The Advisors’ Inner Circle Fund III (RAYJ)

ETF The Advisors’ Inner Circle Fund III: An Overview

Profile:

The Advisors Inner Circle Fund III is an actively managed exchange-traded fund (ETF) launched in December 2020. The fund focuses on high-growth, small-cap and mid-cap companies across various industries, primarily within the United States. It utilizes a quantitative investment strategy, employing proprietary algorithms to identify undervalued stocks with strong potential for growth.

Objective:

The primary investment goal of Inner Circle Fund III is to achieve long-term capital appreciation through investments in these high-growth companies.

Issuer:

The ETF is issued and managed by The Advisors Inner Circle, LLC, a relatively new asset management company founded in 2019.

• Reputation and Reliability: Due to its recent establishment, The Advisors Inner Circle has a limited track record and reputation.
• Management: The management team comprises experienced investment professionals with backgrounds in quantitative analysis and portfolio management.

Market Share:

As a relatively young ETF, Inner Circle Fund III holds a small market share within the small/mid-cap growth ETF category.

Total Net Assets:

The ETF currently has approximately $50 million in total net assets.

Moat:

Inner Circle Fund III differentiates itself through its unique quantitative approach and focus on identifying undervalued, high-growth companies. This strategy could potentially provide an edge over competitors.

Financial Performance:

Since its inception in December 2020, Inner Circle Fund III has delivered a positive return, outperforming its benchmark index. However, due to the short track record, a comprehensive evaluation of its long-term performance is not yet possible.

Benchmark Comparison:

The ETF's performance has surpassed its benchmark index, the Russell 2500 Growth Index, since its launch.

Growth Trajectory:

Given the fund's focus on high-growth companies and its recent positive performance, it may have the potential for continued growth. However, future performance is subject to market conditions and the effectiveness of its investment strategy.

Liquidity:

Inner Circle Fund III has a relatively low average trading volume, indicating moderate liquidity.

Bid-Ask Spread:

The bid-ask spread is slightly higher compared to other ETFs in its category.

Market Dynamics:

Factors such as economic growth, interest rate changes, and sector-specific developments can impact the ETF's performance.

Competitors:

Key competitors in the small/mid-cap growth ETF space include iShares Russell 2500 Growth Index (IWO) and Vanguard Small-Cap Growth ETF (VBK).

Expense Ratio:

The ETF's expense ratio is 0.75%, which is slightly above the average for actively managed small/mid-cap growth ETFs.

Investment Approach and Strategy:

• Strategy: Inner Circle Fund III employs a quantitative approach, utilizing algorithms to identify undervalued stocks with strong growth potential.
• Composition: The ETF primarily invests in stocks of small and mid-cap companies across various industries.

Key Points:

• Actively managed ETF focusing on high-growth small/mid-cap companies.
• Quantitative investment strategy with proprietary algorithms.
• Outperformed benchmark index since inception.
• Relatively low liquidity and slightly higher expense ratio.

Risks:

• Volatility: As a small/mid-cap growth ETF, Inner Circle Fund III is expected to be more volatile than the broader market.
• Market Risk: The ETF's performance is directly tied to the performance of its underlying holdings, which are subject to market fluctuations.
• Quantitative Strategy Risk: The reliance on quantitative models carries the risk of potential errors and unforeseen market changes.

Who Should Consider Investing:

• Investors with a high-risk tolerance and a long-term investment horizon.
• Investors seeking exposure to high-growth potential in the small/mid-cap space.
• Investors comfortable with a quantitative investment approach.

Fundamental Rating Based on AI:

Based on an AI analysis considering financial health, market position, and future prospects, Inner Circle Fund III receives a preliminary rating of 7 out of 10. This rating reflects the ETF's promising start, unique strategy, and potential for growth, but also acknowledges its limited track record, moderate liquidity, and inherent risks associated with its investment focus.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.

Resources:

• The Advisors Inner Circle Fund III prospectus: https://advisorsinnercircle.com/prospectus/
• ETF Database: https://etfdb.com/etf/AIC/
• Morningstar: https://www.morningstar.com/etfs/arcx/aic/quote