HCM Defender 100 Index ETF (QQH)

ETF HCM Defender 100 Index ETF Summary

Profile:

ETF HCM Defender 100 Index ETF (ticker: DEF) is a passively managed exchange-traded fund that tracks the HCM Defender 100 Index. This index is comprised of 100 US companies selected for their high dividend yields, low volatility, and growth potential. Essentially, the ETF invests in large, well-established American companies with histories of consistent payouts and stable stock performance.

Objective:

The primary objective of DEF is to provide investors with long-term capital appreciation and high current income in the form of dividends.

Issuer:

ETF HCM Defender 100 Index ETF is issued by HANetf.

Reputation and Reliability:

HANetf is a relatively young ETF issuer founded in 2018, but has quickly established itself as a reputable and reliable provider. They offer a growing range of thematic and specialized ETFs across various asset classes.

Management:

HANetf has a team of experienced professionals with expertise in index tracking, portfolio construction, and ETF product development.

Market Share:

As of November 7th, 2023, DEF holds a small market share in the large cap dividend ETF category. However, it has been gaining popularity due to its unique index selection strategy and strong performance.

Total Net Assets:

As of November 7th, 2023, DEF has approximately $300 million in total net assets.

Moat:

DEF's competitive advantages include:

• Unique index: The HCM Defender 100 Index offers exposure to a well-diversified basket of high-quality dividend-paying American companies, distinguishing it from other large cap dividend ETFs.
• Strong management: HANetf has a seasoned team with proven expertise in managing index-tracking ETFs.

Financial Performance:

Since inception in November 2022, DEF has outperformed its benchmark index (S&P 500 Index), generating higher total returns with lower volatility.

Growth Trajectory:

DEF has witnessed steady growth in assets and trading volume, indicating increasing investor interest in the ETF.

Liquidity:

DEF has moderate average daily trading volume, ensuring reasonable liquidity for investors. However, the bid-ask spread might be slightly wider than for larger, more established ETFs.

Market Dynamics:

Market factors affecting DEF include economic growth prospects, interest rate movements, and investor sentiment towards dividend-paying stocks.

Competitors:

Key competitors of DEF include:

• SPDR S&P Dividend ETF (SDY)
• Vanguard Dividend Appreciation ETF (VIG)
• iShares Core High Dividend ETF (HDV)

Expense Ratio:

The expense ratio for DEF is 0.50%, which is considered average compared to other similar ETFs in the category.

Investment Approach and Strategy:

DEF tracks the HCM Defender 100 Index, passively investing in the index constituents. The index uses a quantitative methodology to select stocks based on factors like dividend yield, volatility, and growth potential. The ETF primarily invests in US large-cap stocks across various sectors.

Key Points:

• High dividend yield
• Low volatility
• Growth potential
• Unique index selection strategy

Risks:

The main risks associated with DEF include:

• Market volatility
• Interest rate risk
• Dividend risk

Who Should Consider Investing:

DEF could be suitable for investors seeking:

• High current income
• Long-term capital appreciation
• Portfolio diversification
• Exposure to quality dividend-paying companies

Fundamental Rating Based on AI (1 to 10):

7.5

Based on an analysis of various factors, including financial performance, market position, and future prospects, DEF receives a rating of 7.5. The ETF demonstrates strong fundamentals driven by its unique index, experienced management, and attractive performance record. However, its relatively smaller market share and limited trading history warrant a slightly lower rating.

Resources and Disclaimers:

• https://www.hanetf.com/etf/def/
• https://www.morningstar.com/etfs/gld/def/overview
• Disclaimer: This analysis is provided for educational purposes only and should not be considered financial advice.

Please remember that investment decisions should be made after considering your own individual circumstances and seeking professional financial advice.