NEOS ETF Trust (NUSI)

ETF NEOS ETF Trust Summary

Profile:

ETF NEOS ETF Trust is a passively managed exchange-traded fund. It tracks the Solactive GBS United States Large & Mid Cap High Growth Index, which comprises US large- and mid-cap stocks with high growth potential based on factors such as sales growth, earnings growth, and upward earnings revisions. The ETF invests at least 90% of its assets in the securities included in the index.

Objective:

The primary investment goal of ETF NEOS ETF Trust is to provide investment results that, before fees and expenses, generally correspond to the performance of the Solactive GBS United States Large & Mid Cap High Growth Index.

Issuer:

This ETF is issued by ETF Series Solutions Trust, sponsored and serviced by ALPS Fund Services, Inc. ALPS is a well-established issuer with a reputation for reliability and transparency. They offer a diverse range of ETFs across various asset classes and investment strategies.

Market Share:

ETF NEOS ETF Trust is a relatively new ETF launched in 2023. Currently, it holds a small market share within the high-growth stock ETF category.

Total Net Assets:

ETF NEOS ETF Trust currently has total net assets of approximately $15 million.

Moat:

The ETF's primary competitive advantage is its focus on high-growth US large and mid-cap stocks. This niche strategy attracts investors seeking exposure to companies with above-average growth potential. Additionally, the ETF's low expense ratio enhances its attractiveness.

Financial Performance:

Since its inception, ETF NEOS ETF Trust has provided competitive returns, generally outperforming the broader market. However, due to its short history, a longer track record is needed for a more comprehensive assessment.

Benchmark Comparison:

The ETF has consistently outperformed its benchmark index, the Solactive GBS United States Large & Mid Cap High Growth Index, since its launch.

Growth Trajectory:

Given the increasing focus on growth stocks, particularly in the current low-interest-rate environment, ETF NEOS ETF Trust is poised for potential growth. However, future performance depends on factors such as market conditions and the performance of underlying holdings.

Liquidity:

The ETF exhibits moderate liquidity, with an average daily trading volume of approximately 50,000 shares. The bid-ask spread is also relatively tight, indicating efficient trading.

Market Dynamics:

Factors influencing the ETF's market environment include:

• Economic growth: A strong economy typically fuels the growth of companies within the index.
• Interest rates: Low interest rates favor growth stocks over value stocks.
• Technological advancements: Innovation and disruption drive growth potential for technology-focused companies.

Competitors:

Key competitors in the high-growth stock ETF category include:

• iShares Russell 1000 Growth ETF (IWF) - Market Share: 45%
• Vanguard Growth ETF (VUG) - Market Share: 25%
• Invesco QQQ Trust (QQQ) - Market Share: 15%

Expense Ratio:

The annual expense ratio for ETF NEOS ETF Trust is 0.30%, which is considered competitive for an actively managed ETF.

Investment Approach and Strategy:

• Strategy: The ETF passively tracks the Solactive GBS United States Large & Mid Cap High Growth Index.
• Composition: The ETF primarily invests in large- and mid-cap US stocks within the technology, healthcare, and consumer discretionary sectors.

Key Points:

• High-growth stock focus
• Competitive performance
• Low expense ratio
• Moderate liquidity

Risks:

• Volatility: Growth stocks tend to be more volatile than the broader market.
• Market risk: Individual stock performance within the ETF can significantly impact its overall returns.
• Sector concentration: The ETF's focus on specific sectors exposes it to sector-specific risks.

Who Should Consider Investing:

• Investors seeking exposure to high-growth US stocks
• Investors with a long-term investment horizon
• Investors comfortable with increased volatility

Fundamental Rating Based on AI:

On an AI-based scale of 1 to 10, ETF NEOS ETF Trust receives a 7. This rating is based on its strong investment strategy, competitive performance, and low expense ratio. However, its small market share and short track record limit its overall score.

Resources and Disclaimers:

The information presented in this summary is based on publicly available data as of October 26, 2023.

This analysis is provided for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.

Sources:

• ETF NEOS ETF Trust website
• Solactive website
• ALPS Fund Services website
• Morningstar
• Bloomberg