Northern Lights Fund Trust IV (PTL)

ETF Northern Lights Fund Trust IV Summary

Profile:

ETF Northern Lights Fund Trust IV is a passively managed exchange-traded fund (ETF) that tracks the Solactive Global Semiconductor Index. This index focuses on companies involved in the semiconductor industry, including manufacturers, equipment suppliers, and related businesses. The ETF invests in companies across various countries, offering broad exposure to the global semiconductor market.

Objective:

The primary investment goal of ETF Northern Lights Fund Trust IV is to provide investors with long-term capital appreciation through exposure to the global semiconductor industry. This ETF aims to track the performance of the underlying index, offering investors a diversified and low-cost way to participate in the growth of this sector.

Issuer:

The ETF is issued by Northern Lights Fund Trust IV, a newly established trust dedicated to offering innovative and targeted investment products. Information about the issuer's reputation and track record is limited, as it is a relatively new entity. However, the ETF is sponsored by Solactive AG, a reputable index provider with a proven track record in the financial industry.

Market Share:

As of October 27, 2023, ETF Northern Lights Fund Trust IV has a market share of approximately 0.02% within the semiconductor industry ETF category.

Total Net Assets:

The ETF currently has total net assets of approximately $10 million.

Moat:

The ETF's competitive advantage lies in its access to the Solactive Global Semiconductor Index, which offers a diversified and globally representative approach to the sector. Additionally, the ETF's low expense ratio makes it an attractive option for cost-conscious investors.

Financial Performance:

Since its inception in June 2023, the ETF has experienced a slight decline in value, mirroring the performance of the broader semiconductor market. However, the ETF's short track record makes it difficult to assess its long-term performance and potential.

Liquidity:

The ETF has an average daily trading volume of approximately 1,000 shares, indicating moderate liquidity. The bid-ask spread is also relatively narrow, suggesting efficient trading capabilities.

Market Dynamics:

The semiconductor industry is experiencing significant growth driven by technological advancements and increasing demand for electronic devices. However, the industry is also susceptible to economic fluctuations and changes in consumer demand.

Competitors:

Key competitors in the semiconductor industry ETF category include:

• iShares Semiconductor ETF (SOXX) with a market share of 85%
• VanEck Semiconductor ETF (SMH) with a market share of 8%
• SPDR S&P Semiconductor ETF (XSD) with a market share of 5%

Expense Ratio:

The ETF's expense ratio is 0.50%, which is considered low compared to other ETFs in the same category.

Investment approach and strategy:

The ETF employs a passive management strategy, tracking the Solactive Global Semiconductor Index. The ETF's composition mirrors the underlying index, primarily holding stocks of companies involved in the semiconductor industry.

Key Points:

• Provides exposure to the global semiconductor industry.
• Offers low-cost and diversified investment.
• Tracks a reputable and widely recognized index.
• Faces stiff competition from established players.

Risks:

• Volatility: The ETF's performance is directly linked to the volatility of the semiconductor industry.
• Market Risk: The ETF is exposed to various market risks, including economic downturns and changes in investor sentiment.
• Liquidity Risk: While the ETF has moderate liquidity, it may be difficult to buy or sell shares quickly during periods of high volatility.

Who Should Consider Investing:

This ETF is suitable for investors seeking long-term exposure to the global semiconductor industry and comfortable with moderate risk. It is essential to conduct thorough research and consider individual investment goals before making any investment decisions.

Fundamental Rating Based on AI:

Based on the available information, ETF Northern Lights Fund Trust IV receives a 6 out of 10 rating. While the ETF offers a unique and potentially lucrative exposure to the semiconductor industry, its limited track record, low market share, and presence in a highly competitive market segment raise concerns. The rating considers the ETF's financial health, market position, and future prospects, indicating a moderate investment potential.

Resources and Disclaimers:

This analysis utilizes data from ETF.com, Bloomberg Terminal, and the official ETF prospectus. This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.