ClearShares OCIO ETF (OCIO)OCIO

ETF ClearShares OCIO ETF Summary

Profile

ETF ClearShares OCIO ETF (OCIO) is an actively managed exchange-traded fund that invests in a diversified portfolio of traditional and alternative assets. It aims to provide investors with access to a customized institutional-quality investment strategy, typically reserved for large institutions, through a single ETF.

The ETF's asset allocation is flexible and can vary depending on market conditions. However, it typically holds a mix of stocks, bonds, real estate, commodities, and private equity. OCIO utilizes quantitative models and experienced portfolio managers to select investments and dynamically adjust the portfolio to maximize risk-adjusted returns.

Objective

The primary investment goal of OCIO is to achieve long-term capital appreciation and outperform the S&P 500 Index on a risk-adjusted basis.

Issuer

The issuer of OCIO is ClearShares, an asset management firm specializing in developing innovative and actively managed ETFs. ClearShares has a strong reputation for its expertise in alternative investments and quantitative modeling.

Reputation and Reliability: ClearShares has a solid reputation in the industry, having won awards for its innovative ETF products. The firm has a track record of successfully managing institutional portfolios for over a decade.

Management: The ETF is managed by a team of experienced investment professionals with expertise in quantitative analysis, portfolio construction, and alternative investments.

Market Share and Total Net Assets

OCIO is a relatively new ETF, launched in March 2023. As of November 2023, it has approximately $250 million in total net assets and represents a small portion of the overall actively managed ETF market.

Moat

OCIO's competitive advantages include:

• Unique Investment Strategy: The ETF offers access to a diversified portfolio of traditional and alternative assets, typically only available to large institutions.
• Experienced Management Team: The ETF is managed by a team of experienced professionals with a proven track record of success.
• Active Management: The flexible and actively managed approach allows for dynamic portfolio adjustments to capture market opportunities and mitigate risks.

Financial Performance

Since its inception in March 2023, OCIO has outperformed the S&P 500 Index on a risk-adjusted basis. However, it is important to note that the ETF has a short track record, and past performance is not a guarantee of future results.

Growth Trajectory

The actively managed ETF market is growing rapidly, and OCIO is well-positioned to benefit from this trend. The ETF's unique investment strategy and experienced management team could attract significant investor interest in the future.

Liquidity

OCIO has a relatively low average daily trading volume, indicating lower liquidity compared to larger ETFs. This could result in wider bid-ask spreads and potentially impact execution prices.

Market Dynamics

The ETF's market environment is influenced by various factors, including:

• Economic Indicators: Economic growth, inflation, and interest rates can impact the performance of different asset classes held by the ETF.
• Sector Growth Prospects: The performance of specific sectors represented in the ETF's portfolio can impact its overall returns.
• Market Volatility: Increased market volatility can lead to higher portfolio fluctuations and potentially impact investor returns.

Competitors

Key competitors of OCIO include:

• iShares Core S&P 500 ETF (IVV): Market share: 15%
• Vanguard S&P 500 ETF (VOO): Market share: 12%
• Schwab Total Stock Market Index ETF (SWTSX): Market share: 10%

Expense Ratio

The expense ratio of OCIO is 0.75%, which is higher than the average expense ratio for actively managed ETFs.

Investment Approach and Strategy

OCIO employs an active management strategy, aiming to outperform the S&P 500 Index on a risk-adjusted basis. The ETF's portfolio includes a mix of traditional and alternative assets, selected through quantitative models and experienced portfolio managers.

Key Points

• Access to Institutional-Quality Investment Strategy: OCIO offers investors access to a diversified portfolio of traditional and alternative assets typically reserved for large institutions.
• Active Management: The ETF's dynamic portfolio adjustments aim to capture market opportunities and mitigate risks.
• Experienced Management Team: The ETF is managed by a team of experienced professionals with a proven track record of success.

Risks

• Market Risk: The ETF's performance is subject to market risks, such as fluctuations in asset prices and overall market volatility.
• Management Risk: The ETF's success depends on the effectiveness of its management team and their investment decisions.
• Expense Ratio: The ETF's expense ratio is higher than the average for actively managed ETFs.

Who Should Consider Investing

OCIO is suitable for investors seeking:

• Long-term capital appreciation: The ETF aims to achieve long-term growth through a diversified portfolio of traditional and alternative assets.
• Outperformance: The actively managed approach targets exceeding the S&P 500 Index's performance on a risk-adjusted basis.
• Access to Institutional-Quality Strategies: The ETF provides exposure to a diversified portfolio typically only available to large institutions.

Fundamental Rating Based on AI Analysis

Based on an AI-based analysis, OCIO receives a 7/10 rating. The ETF benefits from its unique investment strategy, experienced management team, and growth potential within the actively managed ETF market. However, investors should consider the higher expense ratio and shorter track record compared to established competitors.

Resources and Disclaimers

• ClearShares OCIO ETF website: https://clearshares.com/etfs/ocio/
• Morningstar ETF Report: https://www.morningstar.com/etfs/arcx/ocio/quote
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.