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

ETF Tidal ETF Trust II - The Meet Kevin Pricing Power ETF: A Comprehensive Overview

Profile:

The Meet Kevin Pricing Power ETF is an actively managed ETF focusing on companies with strong pricing power. It invests in large and mid-cap U.S. stocks across various sectors, targeting businesses with the ability to raise prices without significantly impacting demand. The ETF primarily uses fundamental analysis to identify companies with sustainable competitive advantages and strong pricing power.

Objective:

The primary objective of this ETF is to achieve long-term capital appreciation by investing in companies with strong pricing power. It aims to outperform the broad market by identifying and investing in businesses that can maintain or increase their prices even in challenging economic environments.

Issuer:

The ETF is issued by Tidal ETF Trust II, an entity affiliated with The Meet Kevin, a financial education platform founded by Kevin Paffrath.

• Reputation and Reliability: The Meet Kevin platform has gained popularity for its educational content and investment analysis. Kevin Paffrath is a well-known figure in the financial space, with a significant social media following. However, it's important to note that The Meet Kevin is a relatively new player in the ETF market, and its long-term track record in fund management is yet to be established.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fundamental analysis and stock selection. The team leverages The Meet Kevin's research and analysis capabilities to identify companies with strong pricing power.

Market Share:

As a relatively new ETF, The Meet Kevin Pricing Power ETF's market share is still in its early stages of development. However, it has gained significant traction since its launch, attracting investor interest due to its unique focus on pricing power.

Total Net Assets:

The ETF currently has approximately $30 million in total net assets.

Moat:

The ETF's competitive advantage lies in its focus on a specific investment theme – pricing power. This differentiated approach allows the ETF to target a niche market and potentially outperform broader market indices.

Financial Performance:

The ETF has a limited track record since its launch in September 2022. However, initial performance has been positive, outperforming the S&P 500 index in the short term. It's important to note that past performance is not indicative of future results.

Benchmark Comparison:

The ETF's performance is primarily compared to the S&P 500 index as a benchmark for large-cap U.S. stocks.

Growth Trajectory:

The ETF's growth trajectory is promising, considering the increasing investor interest in thematic investing and the potential for companies with strong pricing power to outperform in inflationary environments.

Liquidity:

The ETF has a relatively low average trading volume, indicating moderate liquidity. This could lead to wider bid-ask spreads and potential impact on trade execution.

Market Dynamics:

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

• Economic indicators: Inflation, interest rates, and economic growth can impact companies' pricing power and overall market performance.
• Sector growth prospects: The ETF's performance is also tied to the growth prospects of the sectors it invests in.
• Current market conditions: Market volatility and investor sentiment can affect the ETF's price and liquidity.

Competitors:

The ETF faces competition from other actively managed ETFs and mutual funds focusing on similar investment themes, such as value investing or quality growth. Key competitors include:

• iShares MSCI USA Value Factor ETF (VLUE)
• Avantis U.S. Equity ETF (AVUS)
• Dimensional U.S. Core Equity 2 ETF (DFAC)

Expense Ratio:

The ETF's expense ratio is 0.75%, which is considered average compared to other actively managed ETFs.

Investment Approach and Strategy:

The ETF employs an active management strategy, focusing on identifying companies with strong pricing power through fundamental analysis. It invests in a diversified portfolio of large and mid-cap U.S. stocks across various sectors.

Key Points:

• Focused on companies with strong pricing power.
• Actively managed strategy with a thematic approach.
• Relatively new ETF with a limited track record.
• Moderate liquidity and average expense ratio.

Risks:

• Volatility: As an actively managed ETF, it may experience higher volatility compared to passively managed index funds.
• Market Risk: The ETF's performance is directly tied to the performance of the underlying companies and the overall market conditions.
• Management Risk: The ETF's success depends heavily on the skill and experience of the management team.

Who Should Consider Investing:

This ETF might be suitable for investors seeking:

• Exposure to companies with strong pricing power.
• Active management with a thematic approach.
• Potential for above-market returns.

However, investors should consider their risk tolerance and investment goals before investing in this ETF.

Fundamental Rating Based on AI:

7/10

The AI-based rating considers various factors, including:

• Financial health: The ETF has a solid financial foundation with moderate expenses and a growing asset base.
• Market position: The ETF occupies a niche market with a differentiated approach, potentially offering diversification benefits.
• Future prospects: The focus on pricing power aligns well with current market conditions and long-term investment trends.

However, the limited track record and moderate liquidity warrant a cautious approach.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• Tidal ETF Trust II website: https://www.tidaletftrust.com/
• The Meet Kevin website: https://www.themeetkevin.com/
• ETF.com: https://www.etf.com/
• Morningstar: https://www.morningstar.com/

Disclaimer:

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