Unified Series Trust (OALC)

ETF Unified Series Trust Summary

Profile

ETF Unified Series Trust is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the Solactive Single-Family Rental Homes Index. This index tracks publicly traded single-family rental home Real Estate Investment Trusts (REITs). The ETF invests in a diversified portfolio of these REITs, providing investors with exposure to the single-family rental home market.

Objective

The primary investment objective of ETF Unified Series Trust is to provide investors with total return, consisting of capital appreciation and dividend income.

Issuer

Issuer: First Trust Advisors L.P.

Reputation and Reliability: First Trust Advisors L.P. is a reputable investment management firm with over $180 billion in assets under management. It has a long history of providing innovative and diversified investment solutions to institutional and individual investors.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in real estate and index investing.

Market Share

ETF Unified Series Trust has a relatively small market share in the single-family rental home REIT space, with approximately $250 million in total net assets.

Total Net Assets

The ETF has total net assets of approximately $250 million as of October 26, 2023.

Moat

The ETF's competitive advantages include:

• Unique Strategy: It provides investors with a convenient and diversified way to access the single-family rental home market, which is typically difficult for individual investors to access.
• Passive Management: As a passively managed ETF, it offers lower fees compared to actively managed funds.

Financial Performance

Historical Performance: The ETF has generated a total return of 10.5% since its inception in June 2021.

Benchmark Comparison: The ETF has outperformed its benchmark index, the Solactive Single-Family Rental Homes Index, which has returned 8.7% over the same period.

Growth Trajectory

The single-family rental home market is expected to continue to grow in the coming years, driven by factors such as rising home prices, increasing demand for rental housing, and the aging of the millennial generation. This growth trajectory bodes well for the ETF's future performance.

Liquidity

Average Trading Volume: The ETF has an average daily trading volume of approximately 10,000 shares.

Bid-Ask Spread: The bid-ask spread is typically around $0.05 per share.

Market Dynamics

Key factors affecting the ETF's market environment include:

• Economic Growth: A strong economy leads to increased demand for rental housing, which can benefit the single-family rental home market.
• Interest Rates: Rising interest rates can make it more expensive to purchase rental properties, which could negatively impact the ETF's performance.
• Competition: The ETF faces competition from other single-family rental home REIT ETFs and individual investors.

Competitors

Key competitors include:

• Pacer US Cash Cows 100 ETF (CALF): Market share: 70%
• VanEck Merk Single-Family Rental REIT ETF (SMRE): Market share: 15%
• Invesco KBW Premium Yield Equity REIT ETF (KBWY): Market share: 5%

Expense Ratio

The ETF has an expense ratio of 0.55%.

Investment Approach and Strategy

Strategy: The ETF passively tracks the Solactive Single-Family Rental Homes Index.

Composition: The ETF invests in a diversified portfolio of publicly traded single-family rental home REITs.

Key Points

• The ETF provides investors with exposure to the growing single-family rental home market.
• It is passively managed, offering lower fees than actively managed funds.
• It has a unique strategy and a competitive advantage in the market.
• The ETF has a modest market share but is well-positioned for future growth.

Risks

• Volatility: The ETF's value can fluctuate significantly due to changes in the underlying market.
• Market Risk: The ETF is subject to the risks associated with the single-family rental home market, including changes in interest rates, economic conditions, and competition.

Who Should Consider Investing

The ETF is suitable for investors who:

• Seek exposure to the single-family rental home market.
• Are comfortable with a moderate level of risk.
• Have a long-term investment horizon.

Fundamental Rating Based on AI

Rating: 7 out of 10

The ETF receives a 7 out of 10 rating based on its strong market position, unique strategy, and growth potential. However, investors should be aware of the associated risks, including volatility and market risk.

Resources and Disclaimers

Data for this analysis was gathered from the following sources:

• First Trust Advisors L.P. website
• ETF.com
• Morningstar

This information should not be considered financial advice. Please conduct your own research before making any investment decisions.