Investment Managers Series Trust II - AXS Sustainable Alpha ETF (NXTE)

Overview

The AXS Sustainable Alpha ETF (NXUS) seeks long-term capital appreciation by investing in U.S. equities, utilizing a proprietary model to identify companies with favorable environmental, social, and governance (ESG) characteristics and strong financial metrics.

Reputation and Reliability

AXS Investments is a relatively newer ETF issuer, focusing on alternative and thematic investment strategies. Their reliability is still being established.

Management Expertise

AXS Investments has a team of experienced portfolio managers and analysts who specialize in developing and managing innovative investment strategies. The ETF's success relies heavily on the effectiveness of their proprietary model.

Goal

To achieve long-term capital appreciation while investing in companies with strong ESG profiles.

Investment Approach and Strategy

Strategy: The fund does not track a specific index, but instead employs a proprietary, quantitative model to select securities based on ESG factors and financial strength.

Composition Primarily invests in U.S. equities across various sectors, weighted based on the model's assessment of their ESG performance and financial metrics.

Market Share: Insufficient data available to provide an accurate market share.

Total Net Assets (AUM): Insufficient data available to provide an accurate AUM.

Key Competitors

• ESGV
• SUSL
• CRBN

Competitive Landscape

The competitive landscape is dominated by larger ESG ETFs with significant AUM and brand recognition. NXUS faces challenges in gaining market share due to its relatively small size and newer existence. Its success depends on demonstrating superior performance and attracting investors interested in its specific quantitative ESG approach. The disadvantages of NXUS is its lack of historical performance and relatively small size compared to competitors while the advantage is its smart-beta approach that may find undervalued stocks with long term prospects.

Historical Performance: Insufficient data available to provide accurate historical performance.

Benchmark Comparison: Insufficient data available to provide accurate benchmark comparison.

Expense Ratio: 0.49

Average Trading Volume

Average trading volume is relatively low, potentially impacting trade execution costs.

Bid-Ask Spread

Bid-ask spread data is not readily available, but is expected to be wide due to low average trading volume.

Market Environment Factors

The ETF's performance is influenced by broader market sentiment towards ESG investing, economic growth, and sector-specific trends. Rising interest rates and inflation can negatively impact equity valuations.

Growth Trajectory

The ETF's growth depends on its ability to attract assets through strong performance and effective marketing to investors seeking ESG-focused investments. Changes to strategy and holdings will be dependent on the fund's model's assessment of the current market and ESG landscape.

Competitive Edge

NXUS's competitive advantage lies in its proprietary, quantitative model that combines ESG factors with financial metrics. This approach aims to identify undervalued companies with sustainable business practices. The model-driven approach can potentially offer a more objective and consistent investment strategy compared to actively managed ESG funds. However, its success is contingent on the effectiveness of the model in identifying and selecting suitable investments.

Volatility

Volatility is expected to be comparable to other U.S. equity ETFs, but it may be influenced by the specific sector allocations dictated by the ESG model.

Market Risk

The ETF is subject to general market risk, as well as specific risks related to the ESG factors and the sectors in which it invests. Specific sector or security allocations may contribute to concentration risk, or deviation of portfolio performance from its benchmark.

Ideal Investor Profile

The ETF is suitable for investors seeking long-term capital appreciation and who prioritize ESG considerations in their investment decisions. These investors are willing to accept moderate risk associated with equity investments.

Market Risk

Suitable for long-term investors who are aligned with ESG principles and understand the risks and limitations of a quantitative investment strategy.

The AXS Sustainable Alpha ETF offers investors exposure to U.S. equities with a focus on ESG factors and financial strength, selected through a proprietary quantitative model. Its success hinges on the effectiveness of this model in identifying undervalued and sustainable companies. Key drawbacks of the ETF include a lack of performance history and smaller scale compared to competitors. However, it may appeal to ESG-conscious investors seeking a smart-beta approach.

• ESGV
• SUSL
• CRBN
• VEGN
• DSI

Data Sources:

• AXS Investments website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Data may be delayed.