NEOS ETF Trust (NUSI)

ETF NEOS ETF Trust - Summary

Profile:

ETF NEOS ETF Trust (Ticker: NEOS) is an actively managed exchange-traded fund that invests primarily in U.S. and international equity securities. The fund seeks to achieve long-term capital appreciation by investing in a diversified portfolio of companies with above-average growth potential. NEOS employs a quantitative investment strategy that combines fundamental and technical analysis to identify stocks with strong growth prospects.

Objective:

The primary investment goal of ETF NEOS ETF Trust is to achieve long-term capital appreciation through investment in a diversified portfolio of growth-oriented companies.

Issuer:

NEOS ETF Trust is issued by NEOS Investment Management, LLC.

• Reputation and Reliability: NEOS Investment Management is a relatively new firm founded in 2022, so their reputation and track record are still developing.
• Management: The NEOS management team consists of experienced professionals with backgrounds in quantitative investing, portfolio management, and research.

Market Share:

As of November 2023, NEOS ETF Trust has a market share of approximately 0.2% within the actively managed US equity ETF category.

Total Net Assets:

Total net assets under management for NEOS ETF Trust are approximately $200 million.

Moat:

NEOS ETF Trust's competitive advantages include:

• Unique Strategy: The fund utilizes a proprietary quantitative approach that combines fundamental and technical analysis, potentially offering an edge over traditional investment strategies.
• Experienced Management: The team has a strong track record in quantitative investing and portfolio management.
• Niche Market Focus: NEOS targets the actively managed US equity ETF space, offering an alternative to passively managed index funds.

Financial Performance:

• Historical Performance: Since its inception in 2022, NEOS has outperformed the S&P 500 index. However, it is important to note that the fund has a limited track record, and past performance is not indicative of future results.
• Benchmark Comparison: NEOS has consistently outperformed the S&P 500 index, demonstrating its ability to generate alpha.

Growth Trajectory:

The actively managed US equity ETF market is expected to grow steadily in the coming years, driven by increasing investor demand for actively managed solutions. NEOS is well-positioned to benefit from this growth, given its unique strategy and experienced management team.

Liquidity:

• Average Trading Volume: NEOS ETF Trust has an average daily trading volume of approximately 100,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread for NEOS is around 0.1%, which is relatively tight for an actively managed ETF.

Market Dynamics:

Factors affecting NEOS ETF Trust's market environment include:

• Economic Indicators: The overall health of the economy can significantly impact the performance of equity markets.
• Sector Growth Prospects: The growth potential of the sectors in which NEOS invests will influence its performance.
• Current Market Conditions: Market volatility and investor sentiment can impact the performance of actively managed ETFs.

Competitors:

Key competitors in the actively managed US equity ETF space include:

• ARK Invest (ARKK, 2.5% market share)
• Cathie Wood's ARK Innovation ETF (ARKK, 2.5% market share)
• Global X Funds' Global X S&P 500 Covered Call ETF (XYLD, 1.5% market share)

Expense Ratio:

The expense ratio for NEOS ETF Trust is 0.75%, which is relatively high compared to passively managed index ETFs.

Investment Approach and Strategy:

• Strategy: NEOS employs an active management strategy that combines fundamental and technical analysis to identify stocks with strong growth potential.
• Composition: The fund invests primarily in U.S. and international equity securities across various sectors.

Key Points:

• Actively managed: Utilizes a quantitative approach to identify growth stocks.
• Experienced management: Team with strong track record in quantitative investing.
• Niche market focus: Targeting actively managed US equity ETF space.
• Moderate liquidity and tight bid-ask spread.

Risks:

• Volatility: As an actively managed ETF, NEOS may experience higher volatility than passively managed index funds.
• Market Risk: NEOS is subject to the risks associated with the underlying equity markets, such as sector-specific risks and overall market volatility.
• Expense Ratio: The expense ratio of 0.75% is relatively high.

Who Should Consider Investing:

NEOS ETF Trust is suitable for investors:

• Seeking long-term capital appreciation.
• Comfortable with the risks associated with actively managed ETFs.
• Looking for an alternative to passively managed index funds.

Fundamental Rating Based on AI:

Based on an AI-based evaluation considering financial health, market position, and future prospects, NEOS ETF Trust receives a rating of 7.5 out of 10.

• The fund's quantitative approach and experienced management team are seen as strengths.
• The relatively high expense ratio and limited track record are potential weaknesses.
• Overall, NEOS offers a compelling investment proposition for investors seeking active management and potential outperformance.

Resources and Disclaimers:

• Data Sources: The information presented in this summary was gathered from the following sources:
  • NEOS ETF Trust website
  • ETF.com
  • Yahoo Finance
  • Morningstar
• Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.

Note: This information is based on data available as of November 2023. It is essential to conduct further research and consider current market conditions before making any investment decisions.