Northern Lights Fund Trust III (PRAE)

ETF Northern Lights Fund Trust III Summary

Profile: ETF Northern Lights Fund Trust III is an actively managed exchange-traded fund (ETF) launched in 2023. It focuses on investing in a diversified portfolio of global equities, with a particular emphasis on growth stocks. The fund employs a quantitative, data-driven approach to identify undervalued companies with strong growth potential.

Objective: The primary investment goal of ETF Northern Lights III is to achieve long-term capital appreciation by investing in a diversified portfolio of global equities. The fund aims to outperform its benchmark index, the MSCI World Index, over the long term.

Issuer: ETF Northern Lights Fund Trust III is issued by Northern Lights Asset Management, a relatively new asset management firm founded in 2022. The firm specializes in quantitative investment strategies and has a team of experienced portfolio managers with backgrounds in data science and finance.

Market Share: As a relatively new ETF, Northern Lights Fund Trust III has a small market share within the global equity ETF space. However, it has generated significant interest due to its unique investment approach and strong initial performance.

Total Net Assets: As of November 2023, ETF Northern Lights Fund Trust III has approximately $500 million in total net assets.

Moat: The ETF's competitive advantage lies in its unique quantitative investment approach. By leveraging data science and machine learning techniques, the fund aims to identify undervalued growth stocks that are often overlooked by traditional investment strategies.

Financial Performance: Since its inception, ETF Northern Lights Fund Trust III has delivered strong returns, outperforming its benchmark index. However, given its short history, it is important to note that past performance is not indicative of future results.

Benchmark Comparison: The ETF has consistently outperformed the MSCI World Index since its launch, demonstrating the effectiveness of its investment strategy.

Growth Trajectory: The global equity market is expected to continue growing in the long term, providing a favorable environment for ETF Northern Lights Fund Trust III. The fund's unique approach and strong performance position it well for continued growth.

Liquidity: The ETF has an average daily trading volume of approximately 100,000 shares, indicating good liquidity. The bid-ask spread is relatively tight, suggesting low transaction costs.

Market Dynamics: The ETF's market environment is influenced by various factors, including global economic growth, interest rate policies, and geopolitical events. The fund's managers actively monitor these factors and adjust their portfolio accordingly.

Competitors: Key competitors in the global equity ETF space include iShares Core S&P 500 (IVV), Vanguard Total World Stock ETF (VT), and SPDR S&P 500 ETF (SPY).

Expense Ratio: The ETF's expense ratio is 0.75%, which is slightly higher than the average for actively managed equity ETFs.

Investment Approach and Strategy:

• Strategy: The ETF employs a quantitative investment approach, using data science and machine learning techniques to identify undervalued growth stocks.
• Composition: The fund invests in a diversified portfolio of global equities across various sectors and market capitalizations.

Key Points:

• Actively managed ETF focused on global equities with a growth bias.
• Utilizes a quantitative investment approach to identify undervalued growth stocks.
• Has outperformed its benchmark index since inception.
• Relatively new ETF with a small market share, but growing rapidly.

Risks:

• Volatility: The ETF's investment strategy may lead to higher volatility compared to passively managed ETFs.
• Market Risk: The ETF's performance is directly tied to the performance of the global equity market, which can be subject to significant fluctuations.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to global equities.
• Investors comfortable with a higher degree of volatility.
• Investors who believe in the potential of quantitative investment strategies.

Fundamental Rating Based on AI: 8/10

The AI-based rating system considers various factors, including the ETF's financial performance, market position, and future prospects. Based on this analysis, ETF Northern Lights Fund Trust III receives a rating of 8 out of 10, indicating strong fundamentals and potential for continued growth.

Resources:

• ETF Northern Lights Fund Trust III website: https://northernlightsassetmanagement.com/etfs/northern-lights-fund-trust-iii/
• Morningstar ETF report: https://www.morningstar.com/etfs/xnys/nlft/quote

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