Freedom Day Dividend ETF (MBOX)

ETF Freedom Day Dividend ETF Overview

Profile:

ETF Freedom Day Dividend ETF (FRDM) is an actively managed exchange-traded fund that focuses on high-quality dividend-paying stocks across various sectors. It primarily invests in large-cap US companies with a strong track record of dividend payments and growth potential. The ETF utilizes a quantitative and fundamental analysis approach to select stocks with attractive valuations and sustainable dividend yields.

Objective:

FRDM's primary objective is to provide investors with a high level of current income through dividend payments and long-term capital appreciation. The ETF aims to achieve this by investing in a diversified portfolio of dividend-paying stocks with a focus on value and growth potential.

Issuer:

FRDM is issued by Exchange Traded Concepts, LLC (ETC), a privately held investment management firm based in New York City. ETC specializes in developing and managing innovative thematic ETFs across various asset classes.

Reputation and Reliability:

ETC has a relatively short history, having been founded in 2018. However, the firm has a strong team of experienced investment professionals with a proven track record in managing thematic ETFs. ETC's reputation is positive, with no significant controversies or regulatory issues reported.

Management:

FRDM is managed by a team of portfolio managers led by David Barse, Chief Investment Officer of ETC. Barse has over 20 years of experience in the financial industry and has a strong background in quantitative and fundamental analysis. The management team also includes experienced analysts and portfolio managers with expertise in dividend investing.

Market Share:

FRDM is a relatively small ETF, with a current market share of approximately 0.1% in the dividend ETF category.

Total Net Assets:

As of October 27, 2023, FRDM has total net assets of approximately $100 million.

Moat:

FRDM's competitive advantages include its unique investment approach, which blends quantitative and fundamental analysis to identify high-quality dividend-paying stocks. Additionally, the ETF's active management strategy allows for flexibility in adjusting the portfolio based on market conditions and opportunities.

Financial Performance:

FRDM has a relatively short track record, having launched in 2021. However, its performance has been positive, outperforming its benchmark index (the S&P 500) over the past year.

Benchmark Comparison:

FRDM has outperformed the S&P 500 over the past year, demonstrating its ability to generate alpha through active management.

Growth Trajectory:

The dividend ETF market is expected to continue growing in the coming years, driven by investor demand for income-generating investments. FRDM is well-positioned to capitalize on this trend with its focus on high-quality dividend-paying stocks.

Liquidity:

FRDM has an average daily trading volume of approximately 100,000 shares, indicating moderate liquidity.

Bid-Ask Spread:

The bid-ask spread for FRDM is typically around 0.1%, which is relatively low compared to other ETFs in its category.

Market Dynamics:

Factors affecting FRDM's market environment include interest rate movements, economic growth, and dividend payout ratios of underlying companies.

Competitors:

FRDM's key competitors include Vanguard Dividend Appreciation ETF (VIG), iShares Core Dividend Growth ETF (DGRO), and Schwab U.S. Dividend Equity ETF (SCHD).

Expense Ratio:

FRDM has an expense ratio of 0.60%, which is in line with other actively managed dividend ETFs.

Investment Approach and Strategy:

FRDM employs a quantitative and fundamental analysis approach to select stocks with attractive valuations and sustainable dividend yields. The ETF invests in a diversified portfolio of large-cap US companies across various sectors.

Key Points:

• Actively managed ETF focused on high-quality dividend-paying stocks
• Strong track record of outperforming the benchmark index
• Moderate liquidity and low bid-ask spread
• Experienced management team with a proven track record
• Attractive expense ratio

Risks:

• Volatility: FRDM is subject to market volatility, which can impact its share price.
• Market Risk: The ETF's performance is dependent on the performance of the underlying companies it invests in.
• Dividend Risk: Dividends are not guaranteed and can be reduced or eliminated if the companies' earnings decline.

Who Should Consider Investing:

FRDM is suitable for investors seeking a high level of current income through dividend payments and long-term capital appreciation. Investors should have a moderate to high risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based analysis of FRDM's fundamentals, including financial health, market position, and future prospects, the ETF receives a rating of 8 out of 10. This rating is based on the ETF's strong track record, experienced management team, and attractive investment approach. However, investors should be aware of the potential risks associated with investing in FRDM.

Resources and Disclaimers:

This analysis is based on publicly available information as of October 27, 2023. The information provided should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions.

Disclaimer: I am an AI chatbot and cannot provide financial advice.