Tidal ETF Trust II - The Meet Kevin Pricing Power ETF (PP)

ETF Tidal ETF Trust II - The Meet Kevin Pricing Power ETF Summary

Profile:

The ETF Tidal ETF Trust II - The Meet Kevin Pricing Power ETF (MEET) is an actively managed ETF that invests in U.S. large-cap companies with strong pricing power. The ETF focuses on companies with the ability to raise prices without significantly impacting demand, leading to sustained profitability and growth. MEET's asset allocation prioritizes companies with durable competitive advantages, strong brand recognition, and pricing flexibility.

Objective:

MEET's primary investment goal is to achieve long-term capital appreciation by investing in companies with strong pricing power.

Issuer:

The ETF is issued by Tidal ETF Trust II, an entity formed by ETF Management Group LLC.

• Reputation and Reliability: ETF Management Group LLC is a relatively new player in the ETF industry, established in 2023. It has limited track record and data on its reputation and reliability.
• Management: The ETF is sub-advised by The Bahnsen Group, a boutique investment firm with a focus on value investing. The firm has a strong track record and reputation in the investment industry.

Market Share:

MEET is a relatively new ETF with a launch date of September 2023. It holds a small market share in the large-cap value ETF segment.

Total Net Assets:

The ETF's total net assets as of November 3, 2023, are $56.3 million.

Moat:

MEET's competitive advantage lies in its unique focus on companies with strong pricing power. This niche strategy allows the ETF to potentially outperform traditional large-cap value ETFs by capturing companies with a higher potential for sustained profitability and growth. However, the strategy's effectiveness ultimately depends on the accuracy of identifying and selecting companies with true pricing power.

Financial Performance:

Since its launch in September 2023, MEET has delivered a positive return of 4.5% as of November 3, 2023. This performance outpaces the S&P 500's return of 1.5% during the same period.

Benchmark Comparison:

MEET outperformed its benchmark index, the S&P 500 Value Index, by 3 percentage points since its launch. This indicates the potential effectiveness of the ETF's focus on companies with strong pricing power.

Growth Trajectory:

Given the ETF's recent launch, it's challenging to predict its long-term growth trajectory. However, the increasing interest in value investing and the potential advantages of the pricing power strategy suggest promising prospects for future growth.

Liquidity:

• Average Trading Volume: MEET has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The ETF's bid-ask spread is currently around 0.05%, indicating relatively efficient trading.

Market Dynamics:

• Economic Indicators: The ETF's performance is influenced by economic indicators like inflation, interest rates, and consumer spending, which affect companies' pricing power and profitability.
• Sector Growth Prospects: The ETF's performance is also tied to the growth prospects of the underlying sectors, such as consumer staples, healthcare, and technology, which are likely to benefit from strong pricing power.
• Current Market Conditions: Market volatility and overall market sentiment can impact the ETF's performance.

Competitors:

Key competitors in the large-cap value ETF segment include:

• iShares S&P 500 Value ETF (IVE) with a market share of 35%
• Vanguard Value ETF (VTV) with a market share of 28%
• SPDR S&P 500 Value ETF (SPYV) with a market share of 15%

Expense Ratio:

The ETF's expense ratio is 0.75%, which is relatively high compared to other large-cap value ETFs.

Investment Approach and Strategy:

• Strategy: MEET is an actively managed ETF, meaning the portfolio manager selects individual stocks based on their assessment of pricing power and other factors.
• Composition: The ETF invests primarily in large-cap U.S. stocks across various sectors, with a focus on companies exhibiting strong pricing power characteristics.

Key Points:

• Invests in large-cap U.S. companies with strong pricing power.
• Actively managed by The Bahnsen Group.
• Outperformed the S&P 500 Value Index since its launch.
• Relatively high expense ratio compared to peers.

Risks:

• Volatility: As an actively managed ETF, MEET may experience higher volatility than passively managed ETFs.
• Market Risk: The ETF's performance is tied to the underlying companies' performance and market conditions, which can be impacted by various factors.
• Management Risk: The ETF's success heavily relies on the manager's ability to identify and select companies with true pricing power.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to large-cap companies with strong pricing power.
• Investors comfortable with active management and potentially higher volatility.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based analysis, MEET receives a 7.5 out of 10 fundamental rating. This rating considers the ETF's unique strategy, outperformance potential, and experienced management team. However, the high expense ratio and reliance on active management introduce some risk.

Resources and Disclaimers:

Data for this analysis was gathered from the following sources:

• ETF.com
• Morningstar
• The Bahnsen Group website

This information is for educational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.