Global X NASDAQ 100® Tail Risk ETF (QTR)QTR

Summary of ETF Global X NASDAQ 100® Tail Risk ETF (TAIL)

Profile:

• Focus: Hedging against large declines in the NASDAQ 100 Index.
• Asset Allocation: Primarily invests in call options on the NASDAQ 100 Index and U.S. Treasury bonds.
• Investment Strategy: Aims to provide positive absolute returns regardless of market conditions, with enhanced returns during periods of significant market declines.

Objective:

• To provide investors with downside protection against large declines in the NASDAQ 100 Index.

Issuer:

• Company: Global X Management Company LLC
• Reputation and Reliability: Global X is a reputable ETF provider with over 80 ETFs under management and over $40 billion in assets under management.
• Management: The ETF is managed by a team of experienced professionals with expertise in quantitative analysis and portfolio management.

Market Share:

• TAIL has a market share of approximately 0.5% in the Tail Risk ETF category.

Total Net Assets:

• As of November 9, 2023, TAIL has approximately $1.2 billion in total net assets.

Moat:

• TAIL's unique strategy of using options to hedge against downside risk and its focus on the NASDAQ 100 Index provide a competitive advantage.

Financial Performance:

• Historical Performance: TAIL has a track record of outperforming the NASDAQ 100 Index during periods of market decline. For example, during the February 2022 market correction, TAIL lost 1.9% while the NASDAQ 100 Index declined by 14.5%.
• Benchmark Comparison: TAIL has consistently outperformed the S&P 500 Index during periods of market decline.

Growth Trajectory:

• The demand for tail risk hedging products is expected to increase as investors become more aware of the risks associated with market crashes.

Liquidity:

• Average Trading Volume: TAIL has an average daily trading volume of around 100,000 shares.
• Bid-Ask Spread: The bid-ask spread for TAIL is typically around 0.1%.

Market Dynamics:

• Factors affecting TAIL's market environment include volatility in the NASDAQ 100 Index, interest rates, and investor sentiment.

Competitors:

• Key competitors include the following ETFs:
  • SPDR S&P 500® Dynamic VEQTOR ETN (DVLU)
  • ProShares Short S&P 500 (SH)
  • Direxion Daily S&P 500® Bear 3X Shares (SPXS)

Expense Ratio:

• TAIL has an expense ratio of 0.95%.

Investment Approach and Strategy:

• Strategy: TAIL uses a combination of options and U.S. Treasury bonds to achieve its investment objective.
• Composition: The ETF primarily invests in long-dated call options on the NASDAQ 100 Index and short-term U.S. Treasury bonds.

Key Points:

• TAIL provides downside protection against large declines in the NASDAQ 100 Index.
• The ETF has a unique strategy and a strong track record of outperforming during market downturns.
• TAIL is a relatively liquid ETF with a low expense ratio.

Risks:

• TAIL is subject to the following risks:
  • Volatility: The ETF is more volatile than the NASDAQ 100 Index.
  • Market Risk: The ETF is subject to the risks associated with the NASDAQ 100 Index and U.S. Treasury bonds.

Who Should Consider Investing:

• Investors who are looking to hedge against large declines in the NASDAQ 100 Index.
• Investors who are comfortable with a higher level of volatility.

Fundamental Rating Based on AI:

• Based on the factors mentioned above, TAIL receives a fundamental rating of 8 out of 10. The AI analysis considers the ETF's strong track record, unique strategy, experienced management team, and competitive advantage.

Resources and Disclaimers:

• This analysis is based on data available as of November 9, 2023.
• Data sources include the Global X website, Bloomberg, and ETFDB.
• This information is not intended to be financial advice. Please consult with a financial professional before making any investment decisions.

Disclaimer: I am an AI chatbot and cannot provide financial advice.