Tidal ETF Trust - Intelligent Real Estate ETF (REAI)

Overview

The Intelligent Real Estate ETF (NYSEARCA: IREG) aims to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Quantified STF Intelligent Real Estate Index. It focuses on real estate companies with potential for growth and income.

Reputation and Reliability

Tidal ETF Services LLC serves as the fund's investment adviser. They manage a range of ETFs, but have a relatively short track record compared to larger, more established issuers.

Management Expertise

Information about the specific management team's expertise in real estate and ETF management requires further investigation. The expertise is tied to the index methodology used.

Goal

To provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Quantified STF Intelligent Real Estate Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the Quantified STF Intelligent Real Estate Index, which employs a quantitative approach to select and weight real estate companies.

Composition The ETF holds a portfolio of stocks of publicly traded real estate companies, including REITs and other real estate-related businesses.

Market Share: IREG's market share is very small compared to larger real estate ETFs.

Total Net Assets (AUM): 11278281

Key Competitors

• Real Estate Select Sector SPDR Fund (XLRE)
• Vanguard Real Estate ETF (VNQ)
• iShares Core U.S. REIT ETF (USRT)

Competitive Landscape

The real estate ETF market is highly competitive, dominated by large, well-established funds like XLRE and VNQ. IREG faces the challenge of differentiating itself through its intelligent index strategy. It is a smaller player and will need significant outperformance or a niche strategy to gain substantial market share. A key advantage might be its quantitative, rules-based approach to selecting real estate companies, but it needs to prove its effectiveness against more passive, broad-based competitors.

Historical Performance: Historical performance data should be gathered from reputable financial sources. Data should be presented in an array format for plotting.

Benchmark Comparison: Benchmark comparison requires specific performance data of the Quantified STF Intelligent Real Estate Index. This can then be compared to IREG's performance.

Expense Ratio: 0.49

Average Trading Volume

The average trading volume is relatively low, which can impact trading costs. Data needs to be obtained from financial databases to give a better measure.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, potentially increasing transaction costs for investors. Data needs to be obtained from financial databases to give a better measure.

Market Environment Factors

Economic growth, interest rate movements, and demographic trends heavily influence the real estate market. These factors affect the performance of REITs and other real estate companies held by IREG.

Growth Trajectory

IREG's growth trajectory depends on the success of its quantitative investment strategy and its ability to attract assets. Changes in strategy and holdings would be reflected in its index methodology and portfolio composition.

Competitive Edge

IREG's competitive edge lies in its rules-based 'Intelligent' investment strategy, which uses quantitative methods to pick real estate companies. This approach differentiates it from more passive real estate ETFs. The quantitative focus aims to identify undervalued or high-growth opportunities within the real estate sector. The success of this approach depends on the effectiveness of the underlying index methodology, and whether it can consistently outperform traditional real estate benchmarks.

Volatility

Volatility will reflect the volatility of the real estate sector and the specific stocks held within the ETF. Historical data is required to accurately assess its volatility.

Market Risk

IREG is subject to market risk, including risks specific to the real estate sector, such as changes in interest rates, property values, and economic conditions. REITs held within the fund may be sensitive to interest rate hikes.

Ideal Investor Profile

The ideal investor is someone seeking exposure to the real estate sector through a rules-based, quantitatively driven strategy. This ETF may appeal to investors who want a more active approach to real estate investing.

Market Risk

IREG is suitable for investors with a moderate to high risk tolerance due to the inherent volatility of the real estate market and more active investment strategy. It is likely better for investors with a medium to long term investment horizon.

The Intelligent Real Estate ETF (IREG) offers exposure to the real estate sector through a quantitative, rules-based approach. Its small size and relatively low trading volume present some liquidity considerations. It competes with larger, more established real estate ETFs like XLRE and VNQ. The success of the fund depends on its ability to outperform its benchmark index and attract assets. IREG is most appropriate for investors seeking active management exposure in the real estate sector and willing to accept potentially higher risk and expense ratios compared to passive alternatives.

Data Sources:

• Morningstar
• Yahoo Finance
• ETF.com
• Company Filings

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor.