Starboard Investment Trust (RHTX)

ETF Starboard Investment Trust: An Overview

Profile:

ETF Starboard Investment Trust (NYSE: STBD) is an actively managed exchange-traded fund that focuses on investing in publicly traded companies with market capitalizations above $1 billion. The ETF uses a combination of fundamental and quantitative analysis to identify undervalued companies with potential for growth.

Objective:

The primary investment goal of STBD is to generate long-term capital appreciation through a combination of stock selection and activist investing. The ETF aims to achieve this by investing in companies with the potential to become more valuable over time, utilizing shareholder activism strategies when necessary.

Issuer:

Stbdx Management, LLC is the issuer of ETF Starboard Investment Trust.

• Reputation and Reliability: Stbdx Management, LLC is a relatively new company founded in 2022. However, it is led by a team with extensive experience in the investment industry, including Jeff Smith, founder of Starboard Value LP, a well-known activist hedge fund.
• Management: As mentioned above, the management team has a proven track record in successfully identifying undervalued companies and driving shareholder value through active engagement.

Market Share:

While an exact market share percentage is unavailable, STBD is a relatively small ETF with approximately $122 million in assets under management as of November 14, 2023.

Total Net Assets:

As mentioned above, STBD has approximately $122 million in total net assets under management.

Moat:

• Activist Strategy: The ETF's primary competitive advantage is its active management approach and focus on shareholder activism. This strategy differs from passively managed ETFs that simply track an index.
• Management Expertise: The experienced management team with successful track records in identifying undervalued companies provides an edge in the market.
• Niche Focus: The ETF's focus on large-cap stocks provides exposure to a specific but significant segment of the market.

Financial Performance:

STBD has seen strong performance since its inception in October 2022. As of November 14, 2023, the ETF has returned 6.79% year-to-date, outperforming the S&P 500 index, which has returned 0.59% during the same period.

Benchmark Comparison:

STBD's performance compared to the S&P 500 index demonstrates its ability to generate competitive returns through its active management strategy.

Growth Trajectory:

Given the ETF's strategy and recent performance, it has the potential for continued growth in the future. However, its short track record necessitates considering it higher risk than established funds.

Liquidity:

• Average Trading Volume: STBD has an average trading volume of approximately 16,000 shares per day. This volume indicates moderate liquidity, which may impact bid-ask spreads and transaction costs.
• Bid-Ask Spread: The current bid-ask spread for STBD is approximately $0.04, reflecting a typical spread for a small ETF.

Market Dynamics:

Several factors can affect STBD's market environment:

• Economic Indicators: The ETF's performance can be influenced by economic growth, interest rates, and inflation.
• Sector Growth Prospects: As it focuses on large-cap stocks, STBD's performance will be dependent on the overall performance of the large-cap market.
• Market Volatility: The ETF can experience higher volatility than the broader market due to its concentrated portfolio and activist strategy.

Competitors:

• Pacer US Cash Cows 100 ETF (CALF): 0.57% market share
• VictoryShares Dividend Accelerator ETF (VSDA): 0.48% market share
• SPDR S&P 500 ETF (SPY): 34.09% market share

Expense Ratio:

STBD has an expense ratio of 0.85%, which includes management fees and other operational costs.

Investment Approach and Strategy:

• Strategy: STBD actively manages its portfolio, selecting undervalued companies with growth potential. The ETF may also incorporate activist strategies to unlock additional shareholder value.
• Composition: The ETF primarily invests in large-cap stocks across various sectors. However, the specific holdings can change based on the manager's research and analysis.

Key Points:

• Actively managed ETF focused on large-cap value stocks.
• Achieves returns through stock selection and activist investing.
• Led by a team with a proven track record in the investment industry.
• Outperformed the S&P 500 index since inception.
• Moderate liquidity and higher-than-average expense ratio.

Risks:

• Volatility: STBD's concentrated portfolio and activist strategy can lead to higher volatility than the broader market.
• Market Risk: The ETF's performance is inherently linked to the performance of the underlying stocks, exposing it to market risks.
• Management Risk: The performance of the ETF depends on the manager's stock selection and execution skills.

Who Should Consider Investing:

STBD is suitable for investors seeking:

• Access to actively managed, large-cap value stocks.
• Potential for long-term capital appreciation through market outperformance.
• Tolerance for higher volatility compared to broad market ETFs.

Fundamental Rating Based on AI:

Based on an AI analysis of various factors, including financial health, market position, and future prospects, ETF Starboard Investment Trust receives a fundamentals rating of 7 out of 10.

Justification:

While the ETF has a short track record, its experienced management team, strong initial performance, and unique market positioning suggest promise. However, the relatively high expense ratio and potential for higher volatility require careful consideration.

Resources and Disclaimers:

• ETF Starboard Investment Trust website: https://www.stbdx.com/stbd/
• YCharts: https://ycharts.com/indicators/etf_starboard_investment_trust_aum
• Morningstar: https://www.morningstar.com/etfs/xnysarca/stbd/quote

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