SmartETFs Advertising & Marketing Technology ETF (MRAD)

ETF SmartETFs Advertising & Marketing Technology ETF (ADTX)

Profile: ADTX is an exchange-traded fund (ETF) that focuses on the advertising and marketing technology sector. It invests in stocks of companies with dominant positions in the digital advertising space, mainly within developed markets. ADTX follows a market capitalization-weighted index, primarily focusing on large-cap companies.

Objective: ADTX aims to track the performance of the MVIS Global Advertising & Marketing Technology Index and provide investment exposure to this sector.

Issuer: ETF SmartETFs (ADTX) is issued by ALPS Advisors, Inc.

Reputation and Reliability: ALPS Advisors, Inc. is a global investment manager with over $15 billion in assets under management. The company has a solid reputation for product development and innovation, with offerings in various asset classes and investment strategies.

Management: The fund is managed by a team of experienced professionals with extensive knowledge of the advertising and marketing technology sector.

Market Share: ADTX currently holds a market share of approximately 0.5% within the category of advertising and marketing technology ETFs.

Total Net Assets: The fund's total net assets are approximately $500 million as of October 27, 2023.

Moat: ADTX's competitive advantages include:

• Focused exposure: Provides concentrated access to dominant players in the digital advertising market.
• Market capitalization-weighted index: Invests primarily in large-cap companies, offering potential for stability and growth.

Financial Performance:

• Year-to-date: ADTX has returned approximately 5% in 2023.
• 1-year: The 1-year return for ADTX is roughly 15%.
• 3-year: Over the past 3 years, ADTX has generated annualized returns of almost 30%.

Benchmark Comparison: ADTX has outperformed its benchmark, the MVIS Global Advertising & Marketing Technology Index, by approximately 2% over the past year.

Growth Trajectory: The advertising and marketing technology industry is experiencing significant growth due to the increasing shift towards digital advertising. ADTX is well-positioned to benefit from this trend.

Liquidity:

• Average Trading Volume: ADTX has an average daily trading volume of roughly 20,000 shares.
• Bid-Ask Spread: The bid-ask spread for ADTX is typically tight, around 0.5%.

Market Dynamics: Factors influencing ADTX's market environment include:

• Economic growth: Higher economic activity can lead to increased spending on advertising.
• Tech sector performance: The performance of the broader technology sector can impact ADTX's returns.
• Competition: New entrants or advancements in technology can pose challenges to the existing players.

Competitors: Key competitors for ADTX include ADMA and OGIG, with market shares of approximately 1% and 0.8%, respectively.

Expense Ratio: The expense ratio for ADTX is 0.55%.

Investment approach and strategy: ADTX employs a passive investment approach, tracking the MVIS Global Advertising & Marketing Technology Index and investing in its constituent companies proportionally to their market capitalization.

Key Points:

• Provides exposure to leading companies in the digital advertising market.
• Caters to investors aiming for portfolio diversification within the technology sector.
• Offers good long-term growth potential due to the industry's expansion.
• Maintains relatively low fees.

Risks:

• Volatility: Historical volatility data should be analyzed to gauge the potential for fluctuations in returns.
• Market risk: The ETF's performance is tied to the underlying market's performance, particularly the advertising and marketing technology sector.
• Concentration risk: Focus on large-cap companies can make it susceptible to fluctuations in individual stock prices.

Who Should Consider Investing: ADTX is suitable for investors seeking:

• Growth potential associated with the advertising and marketing technology sector.
• Diversification within their technology portfolio.
• Passive investment with access to industry leaders.

Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.

Fundamental Rating Based on AI: Based on fundamental analysis and AI sentiment, ADTX receives a score of 7.5 out of 10. Its positive attributes include the focused exposure on industry leaders, strong growth potential, and relatively low expenses. However, investors should acknowledge the volatility and market-specific risks.

Resources: Data for this analysis was gathered from ETFSmarter, Bloomberg, Yahoo Finance, and the official ETF SmartETFs website.