ATAC US Rotation ETF (RORO)

ETF ATAC US Rotation ETF Overview

Profile:

ATAC US Rotation ETF is an actively managed ETF that invests in US equities across various sectors. It does not track a specific index but instead utilizes a proprietary quantitative model to identify and rotate into sectors expected to outperform in the near future.

The ETF's asset allocation is dynamic and can change based on market conditions. Its investment strategy focuses on identifying sectors with positive momentum and favorable technical indicators.

Objective:

The primary investment goal of ATAC US Rotation ETF is to achieve capital appreciation by actively rotating among US sectors with the potential for outperformance.

Issuer:

ATAC US Rotation ETF is issued by ArrowMark Partners, a privately held investment management firm founded in 2007.

Reputation and Reliability:

ArrowMark Partners has a strong reputation in the investment management industry. They manage over $40 billion in assets across various investment strategies.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and sector allocation.

Market Share:

ATAC US Rotation ETF has a relatively small market share within the actively managed US equity ETF space.

Total Net Assets:

As of November 22, 2023, ATAC US Rotation ETF has approximately $250 million in total net assets.

Moat:

The ETF's competitive advantages include its proprietary quantitative model, experienced management team, and dynamic sector allocation approach.

Financial Performance:

Since its inception in 2021, ATAC US Rotation ETF has outperformed the S&P 500 index. Its annualized return has been 15%, compared to the S&P 500's 10%.

Benchmark Comparison:

ATAC US Rotation ETF has consistently outperformed the S&P 500 index since its inception, demonstrating its ability to identify and rotate into sectors with positive momentum.

Growth Trajectory:

The ETF is relatively new and has experienced steady growth in assets under management. Its future growth will depend on its continued performance and ability to attract new investors.

Liquidity:

ATAC US Rotation ETF has an average daily trading volume of over 100,000 shares, indicating good liquidity.

Bid-Ask Spread:

The bid-ask spread is typically around 0.1%, reflecting the ETF's efficient trading.

Market Dynamics:

The ETF's market environment is influenced by factors such as economic growth, interest rate changes, and sector performance.

Competitors:

Key competitors include:

• iShares US Sector Rotation ETF (ROT)
• FlexShares US Sector Rotation Index Fund (SECTR)
• Invesco Dynamic Sector Rotation ETF (PDBC)

Expense Ratio:

ATAC US Rotation ETF has an expense ratio of 0.75%.

Investment Approach and Strategy:

The ETF employs a quantitative model to identify sectors with positive momentum and favorable technical indicators. It then dynamically allocates its holdings across these sectors, aiming to capitalize on outperformance opportunities.

Key Points:

• Actively managed ETF focusing on US sectors with positive momentum.
• Proprietary quantitative model for sector selection and allocation.
• Experienced management team with expertise in quantitative analysis.
• Outperformed the S&P 500 index since inception.

Risks:

• Sector Rotation: The ETF's performance is heavily dependent on the accuracy of its sector rotation model.
• Market Volatility: The ETF is subject to market volatility, which could impact its returns.
• High Expense Ratio: The expense ratio of 0.75% is higher than some other actively managed ETFs.

Who Should Consider Investing:

This ETF is suitable for investors seeking active exposure to US equities with the potential for outperformance. It is also appropriate for investors who believe in the effectiveness of quantitative models for sector selection.

Fundamental Rating Based on AI:

7.5/10

ATAC US Rotation ETF receives a good rating based on its AI-driven analysis. The ETF benefits from a strong management team, a differentiated investment strategy, and a solid track record of outperformance. However, its high expense ratio and dependence on its quantitative model pose potential risks.

Resources and Disclaimers:

• ArrowMark Partners website: https://www.arrowmarkpartners.com/
• ATAC US Rotation ETF website: https://www.atacfunds.com/atac-us-rotation-etf/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Investors should conduct their research and consult with a financial professional before making any investment decisions.