Tidal ETF Trust - Intelligent Real Estate ETF (REAI)

ETF Tidal ETF Trust - Intelligent Real Estate ETF Summary

Profile:

• The ETF Tidal ETF Trust - Intelligent Real Estate ETF invests primarily in real estate investment trusts (REITs) across various sectors, including residential, commercial, industrial, and healthcare.
• It employs an actively managed approach, seeking to outperform the FTSE NAREIT All REITs Index.
• The ETF utilizes artificial intelligence (AI) and machine learning algorithms to analyze fundamental and technical data for REIT selection and portfolio construction.

Objective:

• The primary investment goal of the ETF is to generate long-term capital appreciation through investments in REITs.

Issuer:

• Tidal ETF Trust is a newly established issuer with limited track record and market presence.
• The management team consists of experienced professionals with expertise in real estate and artificial intelligence.

Market Share:

• Due to its recent launch, the ETF currently holds a negligible market share in the real estate ETF sector.

Total Net Assets:

• As of October 26, 2023, the ETF has total net assets of approximately $10 million.

Moat:

• The ETF's competitive advantage lies in its utilization of AI and machine learning for REIT selection and portfolio management.
• This approach aims to identify undervalued REITs with high growth potential, potentially leading to superior returns.

Financial Performance:

• Due to its recent launch, the ETF has limited historical performance data.

Benchmark Comparison:

• N/A due to limited performance data.

Growth Trajectory:

• The ETF's growth trajectory is uncertain due to its recent launch and dependence on a relatively new technology.

Liquidity:

• Average Trading Volume: Limited trading volume due to the recent launch.
• Bid-Ask Spread: Wider bid-ask spread compared to established ETFs due to lower liquidity.

Market Dynamics:

• The ETF is affected by various factors, including economic conditions, interest rates, real estate market performance, and technological advancements in AI.

Competitors:

• iShares Core US REIT ETF (USRT)
• Vanguard REIT ETF (VNQ)
• Schwab REIT ETF (SCHH)

Expense Ratio:

• The ETF's expense ratio is 0.75%, which is slightly higher than some established competitors.

Investment Approach and Strategy:

• Actively managed
• Focus on REITs across various sectors
• Utilizing AI and machine learning for REIT selection and portfolio construction
• Seeking to outperform the FTSE NAREIT All REITs Index

Key Points:

• AI-driven investment approach
• Diversified exposure to REITs
• Potential for above-average returns
• Higher expense ratio
• Limited track record

Risks:

• Volatility: The ETF may experience higher volatility due to its focus on a specific sector and its reliance on AI-driven strategies.
• Market Risk: The ETF's performance is tied to the real estate market, which can be cyclical and sensitive to economic conditions.
• Technology Risk: The success of the ETF's AI algorithms relies on their accuracy and adaptability to changing market conditions.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to the real estate sector.
• Investors comfortable with higher volatility and a reliance on new technology.

Evaluation of ETF Tidal ETF Trust - Intelligent Real Estate ETF's fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI':

• Fundamental Rating Based on AI: 6.5
• The ETF demonstrates promising potential with its innovative AI-driven approach and experienced management team. However, its recent launch, limited track record, and higher expense ratio pose challenges. The overall rating reflects the balance between these factors.

Resources and Disclaimers:

• Data gathered from ETF.com, Morningstar, and Tidal ETF Trust website.
• This information is provided for general knowledge and should not be considered as financial advice. Investing involves risks, and individuals should conduct their research and consult with a financial professional before making investment decisions.