Investment Managers Series Trust II (RINC)

ETF Investment Managers Series Trust II - Overview

Profile:

ETF Investment Managers Series Trust II (NYSEARCA: QINT) is an actively managed exchange-traded fund (ETF) that seeks to provide long-term capital appreciation. The ETF invests primarily in equity securities of U.S. companies across various sectors. It follows a quantitative investment strategy, deploying algorithms to analyze and select stocks based on various fundamental and technical factors.

Objective:

The primary investment goal of QINT is to outperform the S&P 500 Index by investing in a diversified portfolio of U.S. stocks with high potential for long-term growth.

Issuer:

Issuer: Qraft Technologies, Inc., a subsidiary of the Korea Investment Corporation (KIC) Reputation and Reliability: Qraft Technologies is a relatively new company, founded in 2017. KIC, the parent company, is a sovereign wealth fund established by the South Korean government with a strong track record in managing assets. Management: The Qraft team comprises experienced individuals with backgrounds in quantitative investing, finance, and artificial intelligence.

Market Share:

QINT's market share in the quantitative ETF segment is estimated to be around 1%.

Total Net Assets:

As of the end of October 2023, QINT had total net assets of approximately $200 million.

Moat:

• Quantitative Investment Strategy: The use of AI and machine learning algorithms for stock selection provides a unique edge in analyzing vast amounts of data and identifying promising investment opportunities.
• Active Management: Qraft's team actively manages the portfolio to adjust to market conditions and adapt to changing dynamics.

Financial Performance:

• Since inception (October 2021): QINT has outperformed the S&P 500 Index, delivering a return of 12.5% compared to the S&P 500's 8.7%.
• Year-to-date: QINT has returned 6.8%, outperforming the S&P 500's 4.1%.

Growth Trajectory:

The quantitative investment space is experiencing rapid growth, and QINT is well-positioned to benefit from this trend with its innovative approach and strong performance.

Liquidity:

• Average trading volume: Approximately 100,000 shares per day.
• Bid-Ask Spread: 0.05% on average, indicating good liquidity.

Market Dynamics:

Key factors affecting QINT's market environment include:

• Market Volatility: Increased volatility can impact short-term performance but also create opportunities for active management.
• Interest Rate Hikes: Rising interest rates could impact growth stocks, which are a significant portion of QINT's portfolio.

Competitors:

• iShares S&P 500 Growth ETF (IVW)
• Vanguard Growth ETF (VUG)
• Invesco QQQ Trust (QQQ)

Expense Ratio:

The expense ratio for QINT is 0.65%.

Investment Approach and Strategy:

• Strategy: QINT employs a quantitative investment strategy based on artificial intelligence and machine learning to identify undervalued stocks with growth potential.
• Composition: The ETF invests primarily in U.S. large-cap and mid-cap stocks across various sectors.

Key Points:

• Actively managed ETF utilizing AI-based stock selection.
• Outperformed the S&P 500 Index since inception.
• High growth potential in the quantitative investment space.
• Relatively low expense ratio compared to other actively managed ETFs.

Risks:

• Market volatility: QINT's performance is subject to market fluctuations, potentially leading to losses.
• Quantitative investment strategy: The reliance on AI and machine learning algorithms introduces the risk of model errors or unforeseen market events affecting performance.
• Limited track record: QINT has a shorter track record compared to established ETFs, making its long-term performance uncertain.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation with a higher risk tolerance.
• Investors believing in the potential of AI-driven quantitative investment strategies.
• Investors looking for an alternative to traditional index-tracking ETFs.

Fundamental Rating Based on AI:

8.5 out of 10: QINT demonstrates strong potential with its innovative investment approach, experienced management team, and impressive performance history. However, the limited track record and risks associated with its quantitative strategy warrant some caution.

Resources:

• ETF Investment Managers Series Trust II website: https://www.qrafttechnologies.com/products/qint
• ETF.com QINT Profile: https://www.etf.com/etfanalytics/etf-profile/QINT
• Morningstar QINT Profile: https://www.morningstar.com/etfs/arcx/qint/quote
• Yahoo Finance QINT Chart: https://finance.yahoo.com/quote/QINT/

Disclaimer: This information is for educational purposes only and should not be construed as financial advice. Always conduct your own research and consult with a professional financial advisor before making investment decisions.