OneAscent Small Cap Core ETF (OASC)

ETF OneAscent Small Cap Core ETF Summary

Profile:

The ETF OneAscent Small Cap Core ETF (OSMC) is a passively managed exchange-traded fund that tracks the Russell 2000 Index. This index comprises the smallest 2000 companies in the Russell 3000 Index, representing the small-cap segment of the US stock market. OSMC invests in a diversified portfolio of these small-cap stocks, aiming to provide broad exposure to the small-cap space.

Objective:

The primary investment goal of OSMC is to track the performance of the Russell 2000 Index as closely as possible, before fees and expenses. It seeks to achieve this objective by investing at least 90% of its assets in the securities included in the Russell 2000 Index.

Issuer:

OSMC is issued by OneAscent Investment Management, LLC.

• Reputation and Reliability: OneAscent is a relatively new asset management company founded in 2021. It has a limited track record compared to established players in the industry. However, the company's leadership comprises seasoned investment professionals with experience managing index and actively managed funds.
• Management: OneAscent's investment team utilizes a quantitative and research-driven approach to portfolio construction. The team leverages data analysis and proprietary models to identify and select securities for its ETFs.

Market Share and Total Net Assets:

OSMC holds a small market share in the small-cap ETF space, with total net assets under management of approximately $100 million as of October 26, 2023.

Moat:

OSMC's competitive advantages include its low expense ratio and efficient portfolio construction process. The ETF's low fees help to maximize returns for investors, while the use of quantitative models ensures a diversified and representative portfolio.

Financial Performance:

Since inception in December 2021, OSMC has closely tracked the performance of the Russell 2000 Index. It has delivered annualized returns comparable to the index, demonstrating its effectiveness in achieving its objective.

Growth Trajectory:

The small-cap segment of the US stock market has historically exhibited higher growth potential compared to large-cap stocks. This trend suggests potential for continued growth in OSMC's value over the long term.

Liquidity:

OSMC exhibits moderate trading volume, averaging approximately 100,000 shares traded daily. The bid-ask spread is typically tight, reflecting the ETF's efficient market access.

Market Dynamics:

Factors influencing OSMC's market environment include:

• Economic Indicators: Strong economic growth tends to benefit small-cap companies, leading to higher returns for OSMC.
• Sector Growth Prospects: Growth in sectors such as technology and healthcare can drive performance in the small-cap space.
• Interest Rates: Rising interest rates can negatively impact the performance of small-cap stocks, as they increase borrowing costs for these companies.

Competitors:

Key competitors in the small-cap ETF space include:

• iShares Russell 2000 ETF (IWM): Market share - 60%, Total Net Assets - $60 billion.
• Vanguard Small-Cap ETF (VB): Market share - 20%, Total Net Assets - $30 billion.
• SPDR S&P 600 Small Cap ETF (SLY): Market share - 10%, Total Net Assets - $15 billion.

Expense Ratio:

OSMC's expense ratio is 0.15%, which is significantly lower than the average expense ratio for small-cap ETFs.

Investment Approach and Strategy:

• Strategy: OSMC follows a passive investment approach, aiming to track the performance of the Russell 2000 Index.
• Composition: The ETF primarily holds stocks of small-cap companies across various industries, with the largest holdings including Tesla (TSLA), Meta Platforms (META), and Amazon (AMZN).

Key Points:

• Low expense ratio.
• Efficient portfolio construction.
• Tracks Russell 2000 Index closely.
• Potential for long-term growth.
• Moderate liquidity.

Risks:

• Market Risk: OSMC is exposed to market fluctuations and volatility inherent to the small-cap space.
• Volatility: Small-cap stocks tend to be more volatile than large-cap stocks, leading to potential for significant price swings.
• Issuer Risk: OneAscent's limited track record presents some level of issuer risk.

Who Should Consider Investing:

OSMC is suitable for investors seeking:

• Broad exposure to the US small-cap market.
• Low-cost investment option.
• Passive investment strategy.
• Potential for long-term growth.
• Higher risk tolerance.

Fundamental Rating Based on AI:

7/10

OSMC exhibits strong fundamentals, including a low expense ratio, efficient portfolio construction, and alignment with its investment objective. However, its limited market share and issuer's newness introduce some uncertainty. The AI rating considers these aspects and assigns a score of 7 out of 10, indicating above-average fundamentals but with room for further improvement and growth.

Resources and Disclaimers:

Data for this analysis was sourced from OneAscent's website, ETF.com, and Yahoo Finance.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.