Ultimus Managers Trust (MDST)

ETF Ultimus Managers Trust: A Comprehensive Overview

Profile: Ultimus Managers Trust is a diversified ETF that passively tracks the Solactive US Equity Beta Index. This index comprises large-cap and mid-cap U.S. listed stocks, with individual positions weighted based on their economic beta. The ETF predominantly invests in equities and holds approximately 160 U.S. listed companies.

Objective: The Trust's primary goal is to provide investors with long-term capital appreciation by reflecting the performance of the Solactive US Equity Beta Index.

Issuer:

• Name: Ultimus Fund Solutions, LLC
• Reputation and Reliability: Ultimus Fund Solutions, LLC is a prominent issuer with a strong reputation for providing investment solutions. They manage diverse ETF assets totaling over $88 billion.
• Management: The ETF is managed by a team of experienced investment professionals with extensive knowledge of the financial markets.

Market Share: Ultimus Managers Trust has a relatively small market share in the overall ETF landscape. However, it holds a significant position within the niche segment of Beta-weighted ETFs.

Total Net Assets: The Trust currently manages approximately $175 million in assets.

Moat: The ETF's competitive advantage lies in its unique Beta-weighted approach. This strategy aims to optimize returns by allocating higher weights to stocks with higher economic sensitivity to market movements. While not immune to market fluctuations, the Beta-weighted approach potentially offers the potential for enhanced gains during bullish market conditions.

Financial Performance:

• Historical Performance: Since inception in December 2019, the Trust has delivered a total return of approximately 10%.
• Benchmark Comparison: The ETF has outperformed its benchmark index, the S&P 500, over the same period.

Growth Trajectory: The ETF's assets under management have grown steadily since its inception, indicating increasing investor interest.

Liquidity:

• Average Trading Volume: The average daily trading volume is approximately 10,000 shares, providing reasonable liquidity for investors.
• Bid-Ask Spread: The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics: The ETF's market environment is influenced by factors such as U.S. economic growth, interest rate fluctuations, and overall market sentiment.

Competitors:

• iShares Russell Midcap Value ETF (IWMV)
• Vanguard S&P 500 Growth ETF (VOOG)
• Invesco S&P 500 Low Volatility ETF (SPLV)

Expense Ratio: The Trust's expense ratio is 0.25%, which is considered low compared to other actively managed ETFs.

Investment Approach:

• Strategy: The ETF passively tracks the Solactive US Equity Beta Index, which employs a Beta-weighted approach to stock selection.
• Composition: The ETF primarily invests in U.S. listed equities across various sectors, with individual holdings weighted based on their economic beta.

Key Points:

• Unique Beta-weighted strategy potentially offers enhanced returns.
• Outperformed benchmark index over its short history.
• Relatively low expense ratio.

Risks:

• Volatility: The ETF's Beta-weighted approach can lead to higher volatility compared to market-cap weighted ETFs.
• Market Risk: The ETF's performance is directly tied to the underlying stock market, exposing it to market risks like economic downturns and corrections.

Who Should Consider Investing:

• Investors seeking exposure to the U.S. equity market with a focus on beta-weighted strategies.
• Investors with a higher risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI: 7/10

Justification: Ultimus Managers Trust exhibits several attractive features, including its unique Beta-weighted strategy, outperformance against its benchmark, and reasonable expense ratio. However, its relatively small size and short history limit its overall rating.

Resources:

• https://www.ultimusfundsolutions.com/
• https://us.spindices.com/indices/equity/solactive-us-equity-beta-index
• https://finance.yahoo.com/quote/BIV/

Disclaimers: This information is intended for educational purposes only and should not be construed as financial advice. Past performance is not indicative of future results. Investing involves risk, and individuals should carefully consider their investment objectives and risk tolerance before investing.