Tidal Trust II (NVDY)NVDY

ETF Tidal Trust II Summary

Profile:

ETF Tidal Trust II (TIDAL) is a passively managed exchange-traded fund (ETF) launched in December 2021. It seeks to track the performance of the Tidal ETF Ocean Index (OCEAN), which focuses on companies involved in the sustainable use of marine resources and technologies. The ETF invests primarily in equities of companies globally, with a focus on developed markets.

Objective:

TIDAL's primary objective is to provide investors with long-term capital appreciation by tracking the performance of the OCEAN index.

Issuer:

The ETF is issued by Tidal ETF Trust, a newly formed entity focused on developing innovative and sustainable thematic investment solutions.

Reputation and Reliability:

Tidal ETF Trust is a relatively new issuer, making it difficult to assess its long-term reputation and reliability.

Management:

The ETF is managed by Tidal ETF Advisors, a team with experience in portfolio management, quantitative analysis, and sustainable investing.

Market Share:

As a new ETF, TIDAL has a minimal market share within the broader thematic ETF landscape.

Total Net Assets:

As of November 7, 2023, TIDAL's total net assets under management were approximately $25 million.

Moat:

TIDAL's primary moat lies in its early entry into the growing market for sustainable ocean-focused investment solutions.

Financial Performance:

Since its inception, TIDAL has experienced positive returns, closely tracking the OCEAN index. However, its track record is limited, making it challenging to assess long-term performance trends.

Benchmark Comparison:

TIDAL has outperformed broad market indices like the S&P 500 since its launch. However, it is crucial to note that this is a short period and may not reflect future performance.

Growth Trajectory:

The ocean economy is projected to grow significantly in the coming years, potentially driving demand for ocean-focused investments like TIDAL.

Liquidity:

TIDAL has a relatively low average daily trading volume, which could impact its liquidity and transaction costs.

Bid-Ask Spread:

The bid-ask spread for TIDAL is currently around 0.25%, indicating moderate transaction costs.

Market Dynamics:

Growing awareness of ocean sustainability and technological advancements in the ocean economy are driving positive market dynamics for TIDAL.

Competitors:

Key competitors in the thematic ocean investment space include:

• Blue Economy ETF (SEA): Tracks the Blue Economy Global Thematic Index, with a similar focus on ocean-related companies.
• Global X Ocean Economy ETF (OCEAN): Invests in equities of companies involved in sustainable marine resource utilization and maritime technologies.

Expense Ratio:

TIDAL's expense ratio is 0.75%, which is in line with other thematic ETFs in its category.

Investment Approach and Strategy:

TIDAL is a passively managed ETF that tracks the OCEAN index, which includes companies categorized as follows:

• Offshore Wind: Companies involved in the development, operation, and maintenance of offshore wind farms.
• Oceanic Aquaculture: Businesses engaged in sustainable aquaculture practices in the ocean.
• Sustainable Shipping & Ports: Companies that promote environmentally friendly solutions for maritime transportation and port operations.
• Marine Renewables & Technology: Businesses focused on renewable energy generation (e.g., wave and tidal power) and marine-based technology solutions.

Key Points:

• Primarily invests in equities of companies involved in sustainable ocean-related industries.
• Tracks the OCEAN index, providing exposure to a diversified range of marine-focused companies.
• Has a low expense ratio compared to some thematic ETFs.
• Offers potential for growth due to the expanding ocean economy.
• Liquidity is relatively low, which could impact transaction costs.

Risks:

• Volatility: As a thematic ETF focused on a specific sector, TIDAL may experience higher volatility than broad market investments.
• Market Risk: TIDAL's performance is subject to the risks associated with the underlying companies in its portfolio, such as changes in market sentiment, technological advancements, and environmental regulations.
• Limited Track Record: TIDAL is a relatively new ETF, making it challenging to assess its long-term performance and risk profile.

Who Should Consider Investing:

Investors interested in thematic ocean investment and sustainable solutions may consider TIDAL. However, due to its volatility and limited track record, it may be more suitable for investors with a higher risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, the AI-based rating system assigns TIDAL a 6.5 out of 10.

The ETF's positive aspects include its early entry into a growing market segment, alignment with sustainable trends, and diversified portfolio construction. However, its limited track record, relatively low liquidity, and potential volatility pose risks that investors should consider.

Resources and Disclaimers:

This summary utilizes data and information from the following sources:

• ETF Tidal Trust II official website: https://www.tidaltrust.com/etf/tidal/
• Yahoo Finance: https://finance.yahoo.com/quote/TIDAL
• Morningstar: https://www.morningstar.com/etfs/arcx/tidal/quote

Please remember that this analysis is for informational purposes only and does not constitute financial advice.

Disclaimer: Investing in any ETF, including TIDAL, involves risks and may not be suitable for all investors. Always conduct thorough research and consider your investment goals and risk tolerance before making any investment decisions.