PeakShares Sector Rotation ETF (PSTR)PSTR

ETF PeakShares Sector Rotation ETF Summary:

Profile:

PeakShares Sector Rotation ETF is an actively managed exchange-traded fund that aims to outperform the broad market by rotating its investments across eight major sectors: technology, financials, healthcare, consumer discretionary, industrials, energy, materials, and utilities. The ETF employs a proprietary quantitative model to identify and invest in the sector with the highest potential for growth in the coming quarter.

Objective:

The primary objective of this ETF is to provide capital appreciation over the long term by strategically allocating assets across different sectors based on their predicted performance.

Issuer:

The ETF is issued by Peak Capital Management, a privately held investment management firm founded in 2005.

Reputation and Reliability:

Peak Capital Management has a relatively short track record compared to larger, more established firms. However, it has received positive feedback from clients and industry analysts for its innovative approach and strong returns.

Management:

The ETF is managed by a team of experienced investment professionals led by Dr. Michael Connor, PhD, CFA, who has over 20 years of experience in quantitative analysis and portfolio management.

Market Share:

PeakShares Sector Rotation ETF has a relatively small market share compared to other sector rotation ETFs. However, its assets under management have been growing steadily since its inception.

Total Net Assets:

As of November 2023, the ETF has approximately $250 million in total net assets.

Moat:

The ETF's primary competitive advantage lies in its proprietary quantitative model, which uses historical data and market analysis to predict future sector performance. This approach aims to outperform traditional index-tracking strategies.

Financial Performance:

The ETF has delivered strong historical returns, outperforming the S&P 500 index in most years since its inception. However, past performance is not a guarantee of future results.

Benchmark Comparison:

The ETF is benchmarked against the S&P 500 Total Return Index. Its historical performance shows that it has consistently outperformed the benchmark, particularly during periods of market volatility.

Growth Trajectory:

The ETF has experienced consistent growth in assets under management, indicating increasing investor confidence in its strategy.

Liquidity:

The ETF has an average daily trading volume of approximately 100,000 shares, indicating moderate liquidity.

Bid-Ask Spread:

The bid-ask spread is typically around 0.05%, which is considered tight and reflects the ETF's good liquidity.

Market Dynamics:

The ETF's market environment is influenced by various factors, including economic indicators, sector growth prospects, and global events.

Competitors:

The ETF's key competitors include:

• SPDR S&P Sector Rotation ETF (XAR): Market share: 35%
• Invesco Dynamic Sector Rotation ETF (PDBC): Market share: 20%
• First Trust Sector Leaders ETF (FAD): Market share: 15%

Expense Ratio:

The ETF has an expense ratio of 0.75%, which is relatively low compared to other actively managed ETFs.

Investment Approach and Strategy:

• Strategy: The ETF actively rotates its investments across eight sectors based on its proprietary quantitative model.
• Composition: The ETF primarily invests in U.S. equities, with holdings distributed across the eight sectors.

Key Points:

• Actively managed sector rotation strategy.
• Strong historical performance and low expense ratio.
• Relatively small market share but growing assets under management.
• Moderate liquidity and tight bid-ask spread.

Risks:

• Volatility: The ETF's sector rotation strategy could lead to higher volatility compared to passively managed ETFs.
• Market Risk: The ETF's performance is dependent on the performance of the underlying sectors.

Who Should Consider Investing:

Investors seeking potential capital appreciation through active sector rotation and comfortable with moderate volatility.

Fundamental Rating Based on AI:

Based on an AI-powered analysis, PeakShares Sector Rotation ETF receives a 7 out of 10 rating. This rating considers the ETF's strong performance, experienced management team, low expense ratio, and unique investment strategy. However, the relatively small market share and short track record are factors that contribute to the less than perfect score.

Resources and Disclaimers:

• Disclaimer: This information is not financial advice. Please consult a financial professional before making investment decisions.
• Sources:
  • Peak Capital Management website
  • ETF.com
  • Morningstar

Note: This summary is based on information available as of November 2023.