Exchange Traded Concepts Trust (NUKZ)

Overview of ETF Exchange Traded Concepts Trust

Profile:

ETF Exchange Traded Concepts Trust (BATS: 1TEC) is a passively managed exchange-traded fund (ETF) that provides diversified exposure to the U.S. equity market through a broad-based strategy. It seeks to track the performance of the S&P 500 Index, which includes 500 large-cap companies across various industries.

Objective:

1TEC's primary investment goal is to achieve returns that closely match the performance of the S&P 500 Index. By offering a low-cost and convenient way to invest in a large basket of blue-chip stocks, the ETF aims to deliver long-term capital appreciation for investors.

Issuer:

1TEC is issued by Exchange Traded Concepts Trust, a subsidiary of New York Life Investment Management (NYLIM).

Reputation and Reliability:

NYLIM is a well-established and reputable financial services provider with a long history of managing assets for individuals and institutions. The company is known for its strong risk management practices and its commitment to client service.

Management:

The management team responsible for 1TEC has extensive experience in the asset management industry. They are responsible for making investment decisions and managing the ETF's portfolio to ensure it tracks the S&P 500 Index closely.

Market Share:

1TEC is a relatively small ETF, with a market share of less than 0.5% in the broad-based U.S. equity ETF market. However, it provides a low-cost option for investors who want to gain exposure to the S&P 500 Index.

Total Net Assets:

As of October 26, 2023, 1TEC has approximately $15.6 million in assets under management.

Moat:

1TEC's primary competitive advantage is its low expense ratio. With an expense ratio of just 0.05%, it is significantly less expensive than many other S&P 500 ETFs. Additionally, the ETF offers a convenient way to invest in the index in a diversified manner.

Financial Performance:

1TEC has closely tracked the S&P 500 Index's performance since its inception in 2017. Over the past three years, the ETF has returned an annualized 12.7%, slightly lagging the index's 13.1% return.

Benchmark Comparison:

1TEC's returns have been very similar to the S&P 500 Index's returns. This indicates that the ETF has effectively achieved its objective of tracking the index closely.

Growth Trajectory:

The broad-based U.S. equity market is expected to continue growing over the long term. As the S&P 500 Index tracks this growth, 1TEC is also expected to experience growth over time.

Liquidity:

1TEC has an average trading volume of over 100,000 shares per day, making it a reasonably liquid ETF. The bid-ask spread is typically tight, indicating low trading costs.

Market Dynamics:

Factors affecting 1TEC's market environment include the overall performance of the U.S. equity market, interest rate fluctuations, economic growth, and investor sentiment.

Competitors:

Key competitors to 1TEC include IVV (iShares CORE S&P 500 ETF) with 15.66% market share, VOO (Vanguard S&P 500 ETF) with 11.39% market share, and SPY (SPDR S&P 500 ETF) with 7.69% market share.

Expense Ratio:

1TEC has a low expense ratio of 0.05%, making it one of the least expensive S&P 500 ETFs available.

Investment Approach and Strategy:

1TEC is a passively managed ETF that aims to track the S&P 500 Index. The ETF holds all of the stocks included in the index in the same weightings as the index itself.

Key Points:

• Low-cost access to the S&P 500 Index.
• Convenient way to invest in a large basket of blue-chip stocks.
• Track record of closely following the S&P 500 Index performance.
• Highly liquid with low trading costs.