RiverFront Dynamic US Flex-Cap ETF (RFFC)RFFC

Overview of ETF RiverFront Dynamic US Flex-Cap ETF (DFC)

Profile:

RiverFront Dynamic US Flex-Cap ETF (DFC) is an actively managed, non-diversified exchange-traded fund that invests across the entire US equity spectrum, dynamically adjusting its allocation between large, mid, and small-cap stocks. The ETF utilizes a quantitative model to select stocks based on fundamental analysis and expected long-term returns.

Objective:

The primary investment goal of DFC is to outperform the S&P 500 Index over a full market cycle through strategic asset allocation and fundamental stock selection.

Issuer:

RiverFront Investment Group, LLC (RiverFront) is the issuer of DFC.

Reputation and Reliability:

RiverFront is a well-established investment management firm with over $90 billion in assets under management. The firm has a solid reputation for disciplined portfolio management and active, research-driven investment strategies.

Management:

RiverFront’s portfolio management team possesses extensive experience and expertise in quantitative analysis and fundamental stock selection. The team employs a rigorous investment process and utilizes proprietary research tools.

Market Share:

DFC has a market share of approximately 0.1% in the US flex-cap equity segment.

Total Net Assets:

DFC's total net assets are currently around $200 million.

Moat:

DFC's competitive advantages include:

• Quantitative model: The ETF's proprietary model leverages fundamental analysis and advanced quantitative techniques to identify undervalued stocks with long-term growth potential.
• Active management: The portfolio managers actively manage the ETF, strategically adjusting its asset allocation and stock selection to optimize performance in different market conditions.
• Experienced team: RiverFront's seasoned portfolio management team brings a wealth of knowledge and expertise to the investment process.

Financial Performance:

DFC has outperformed the S&P 500 Index since its inception in 2013.

Benchmark Comparison:

On a 3-year and 5-year basis, DFC has consistently outperformed the S&P 500 Index.

Growth Trajectory:

DFC's assets under management have grown steadily since its launch, reflecting increasing investor interest in its active management approach and performance track record.

Liquidity:

DFC has an average daily trading volume of approximately 100,000 shares, indicating moderate liquidity.

Bid-Ask Spread:

The bid-ask spread for DFC is typically around 0.05%, indicating a low cost of trading.

Market Dynamics:

Market factors affecting DFC include:

• Economic indicators: Overall economic conditions can impact the performance of US equities, influencing DFC's asset allocation and stock selection.
• Sector growth prospects: DFC's performance may be affected by the growth potential of different sectors within the US equity market.
• Interest rate changes: Rising interest rates can impact the relative attractiveness of equities compared to fixed-income investments, potentially influencing investor demand for DFC.

Competitors:

Key competitors of DFC include:

• FlexShares US Quality Large Cap Index Fund (QLC)
• iShares S&P 500 Growth ETF (IVW)
• Vanguard S&P 500 Growth ETF (VOOG)

Expense Ratio:

DFC has an expense ratio of 0.75%, which includes management fees and other operational costs.

Investment Approach and Strategy:

DFC employs an active management strategy, dynamically adjusting its allocation between large, mid, and small-cap stocks based on quantitative analysis and fundamental stock selection. The ETF's portfolio typically holds around 70 to 100 stocks across various sectors.

Key Points:

• Actively managed flex-cap equity ETF
• Proprietary quantitative model for stock selection
• Outperformed S&P 500 Index since inception
• Experienced portfolio management team
• Moderate liquidity and low trading cost

Risks:

• Market risk: DFC's performance is subject to overall market risks, including market volatility and potential declines in stock prices.
• Style risk: As a flex-cap ETF, DFC's performance may deviate from other large-cap, mid-cap, or small-cap focused ETFs.
• Active management risk: The ETF's performance relies on the success of its portfolio managers' active management strategies.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to a diversified portfolio of US equities.
• Investors who prefer actively managed ETFs with a focus on fundamental analysis and stock selection.
• Investors who believe in the effectiveness of quantitative models and data-driven investment strategies.

Fundamental Rating Based on AI:

Based on a comprehensive analysis of DFC's financial health, market position, and future prospects, an AI-based rating system awards DFC a score of 8.5 out of 10. This rating is attributed to the ETF's strong track record, experienced management team, reasonable expense ratio, and competitive advantages. However, investors should consider their individual risk tolerance and investment goals before making any investment decisions.

Resources and Disclaimers:

Information for this analysis was obtained from the following sources:

• RiverFront Investment Group
• Bloomberg Terminal
• FactSet
• ETF.com

This information is for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting thorough due diligence.