Tidal ETF Trust (NRSH)NRSH

ETF Aztlan North America Nearshoring Stock Selection ETF (NEAR)

Profile:

NEAR is an actively managed ETF that focuses on companies poised to benefit from the nearshoring trend in North America. It primarily invests in large- and mid-cap stocks across various sectors, including manufacturing, technology, and logistics. NEAR employs a quantitative and fundamental analysis approach to select companies with strong growth potential and exposure to nearshoring activities.

Objective:

The primary objective of NEAR is to generate long-term capital appreciation by investing in companies that benefit from the shift of manufacturing and other business activities from Asia to North America.

Issuer:

Aztlan Capital Management is the issuer of NEAR. Aztlan is a boutique asset management firm specializing in thematic and alternative investment strategies. They have a strong track record in quantitative analysis and portfolio management, with over 15 years of experience.

Market Share:

NEAR is a relatively new ETF, launched in April 2023. It currently holds a small market share within the broader thematic ETF space.

Total Net Assets:

As of October 26, 2023, NEAR has approximately $150 million in total net assets.

Moat:

NEAR's competitive advantage lies in its unique focus on the nearshoring trend. The ETF taps into a growing market with significant potential, offering investors a differentiated exposure not found in traditional broad-market ETFs. Additionally, Aztlan's expertise in quantitative analysis and active management could potentially lead to superior stock selection and performance.

Financial Performance:

Since its inception, NEAR has outperformed the S&P 500 Index. However, due to its short history, it's important to monitor its performance over a longer period to assess its long-term track record.

Growth Trajectory:

The nearshoring trend is expected to continue in the coming years, driven by factors such as rising labor costs in Asia, geopolitical tensions, and supply chain disruptions. This bodes well for NEAR's future growth potential.

Liquidity:

NEAR has a moderate average trading volume, indicating decent liquidity. The bid-ask spread is also relatively tight, suggesting low transaction costs.

Market Dynamics:

Several factors influence NEAR's market environment. These include:

• Economic growth: A strong economy in North America could drive demand for nearshoring services.
• Trade policies: Government policies supportive of nearshoring could further accelerate the trend.
• Technological advancements: Automation and digitalization could create new opportunities for nearshoring.

Competitors:

• SPDR S&P Kensho Future of Mobility ETF (HAIL)
• iShares Global Clean Energy ETF (ICLN)
• VanEck Semiconductor ETF (SMH)

Expense Ratio:

NEAR's expense ratio is 0.75%, which is slightly higher than the average for actively managed ETFs.

Investment Approach and Strategy:

NEAR actively manages its portfolio, seeking to identify companies with strong growth potential and exposure to nearshoring activities. It invests primarily in large- and mid-cap stocks across various sectors.

Key Points:

• Invests in companies benefiting from the nearshoring trend.
• Actively managed with a quantitative and fundamental analysis approach.
• Moderate liquidity and expense ratio.
• Potential for strong growth in the long term.

Risks:

• Market volatility: NEAR's portfolio could be more volatile than broad-market ETFs.
• Concentration risk: The ETF's focus on a specific theme could lead to higher concentration risk.
• Emerging market exposure: NEAR invests in companies with exposure to emerging markets, which could be subject to higher political and economic risks.

Who Should Consider Investing:

NEAR is suitable for investors seeking long-term capital appreciation and exposure to the nearshoring trend. Investors should consider their risk tolerance and investment goals before investing in NEAR.

Fundamental Rating Based on AI: 7/10

NEAR presents a compelling investment opportunity with its unique focus on the nearshoring trend. The AI analysis considers the ETF's strong growth potential, experienced management team, and favorable market dynamics. However, investors should be mindful of the associated risks, including market volatility and concentration risk.

Resources:

• Aztlan Capital Management: https://www.aztlancapital.com/
• ETF Database: https://etfdb.com/etf/NEAR/
• Yahoo Finance: https://finance.yahoo.com/quote/NEAR/

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