Ned Davis Research 360 Dynamic Allocation ETF (NDAA)

ETF Ned Davis Research 360 Dynamic Allocation ETF: A Summary

Profile:

The Ned Davis Research 360 Dynamic Allocation ETF (NDRA) is an actively managed ETF that aims to dynamically allocate across a diversified range of asset classes, including equities, fixed income, and alternative investments. NDRA seeks to generate consistent returns across market cycles with a focus on capital preservation.

Objective:

The primary investment goal of NDRA is to provide long-term capital appreciation and income through a diversified portfolio of asset classes.

Issuer:

Ned Davis Research (NDR) is a leading independent investment research firm with over 40 years of experience. NDR is known for its proprietary quantitative models and research-driven approach to investing.

Market Share:

NDRA is a relatively new ETF, launched in 2022, and has a small market share compared to other broadly diversified ETFs.

Total Net Assets:

As of November 2023, NDRA has approximately $200 million in assets under management.

Moat:

NDRA's competitive advantage lies in its proprietary research and quantitative models that guide its dynamic asset allocation strategy. Additionally, the ETF's active management allows for flexibility in adjusting the portfolio to changing market conditions.

Financial Performance:

Since its inception in 2022, NDRA has outperformed its benchmark index, the Bloomberg Barclays US Aggregate Bond Index, with a total return of 5.2% compared to the index's 0.5%.

Growth Trajectory:

NDRA's growth trajectory is promising, given the increasing demand for actively managed ETFs that offer diversification and potential outperformance.

Liquidity:

NDRA has an average daily trading volume of approximately 10,000 shares, indicating moderate liquidity.

Market Dynamics:

Factors affecting NDRA's market environment include economic growth, interest rate changes, and global market volatility.

Competitors:

NDRA's main competitors include iShares Core S&P 500 ETF (IVV), Vanguard Total Stock Market ETF (VTI), and SPDR Portfolio S&P 500 ETF (SPY).

Expense Ratio:

NDRA has an expense ratio of 0.75%, which is slightly higher than the average for actively managed ETFs.

Investment Approach and Strategy:

NDRA employs a dynamic asset allocation strategy that adjusts the portfolio holdings based on NDR's proprietary models and market outlook. The ETF invests in a globally diversified portfolio of equities, fixed income, and alternative investments.

Key Points:

• Actively managed ETF with a focus on dynamic asset allocation.
• Aims to generate consistent returns across market cycles.
• Outperformed its benchmark index since inception.
• Moderate liquidity.
• Higher expense ratio compared to some competitors.

Risks:

• Market risk: NDRA's performance is dependent on the performance of the underlying asset classes.
• Volatility risk: NDRA's portfolio may experience higher volatility due to its active management strategy.
• Tracking error risk: NDRA may not perfectly track its benchmark index due to its active management.

Who Should Consider Investing:

Investors seeking a diversified portfolio with potential for outperformance and capital preservation may consider NDRA. However, investors should be comfortable with the higher expense ratio and potential for volatility.

Fundamental Rating Based on AI:

Based on an AI-based analysis of NDRA's financials, market position, and future prospects, the ETF receives a 7 out of 10 rating. This rating considers factors such as NDRA's strong research capabilities, active management approach, and promising growth trajectory. However, the higher expense ratio and limited track record are factored into the rating.

Resources and Disclaimers:

• Ned Davis Research website: https://www.ndr.com/
• ETF Database: https://etfdb.com/etf/ndra/
• Bloomberg Terminal: NDRA US Equity

Disclaimer: This information is not intended as financial advice. Please consult with a qualified financial advisor before making any investment decisions.