ETF Opportunities Trust - Alpha Dog ETF (RUFF)

ETF ETF Opportunities Trust - Alpha Dog ETF Overview

Profile: ETF ETF Opportunities Trust - Alpha Dog ETF, ticker symbol DOGZ, is an actively managed exchange-traded fund that invests primarily in other exchange-traded funds (ETFs). It focuses on a diverse selection of ETFs across various asset classes, aiming to maximize long-term total returns.

Objective: DOGZ's primary investment goal is to achieve capital appreciation through a combination of capital gains and current income. They primarily aim for long-term growth with a moderate level of risk.

Issuer: The issuer of DOGZ is ETF Opportunities Trust, a subsidiary of Exchange Traded Concepts, LLC.

• Reputation and Reliability: The issuer, Established in 2007, has a long-standing presence in the ETF industry and manages a diversified portfolio of actively managed ETFs. However, with a young history compared to other ETF providers, its long-term performance remains to be evaluated.
• Management: The management team consists of experienced investment professionals with expertise in ETF selection and portfolio construction.

Market Share: DOGZ is a relatively small ETF with a market share of less than 0.1% in the actively managed ETF category.

Total Net Assets: As of November 3, 2023, DOGZ has approximately $70.7 million in total net assets.

Moat: DOGZ's competitive advantage lies in its active management approach. The portfolio managers actively select and allocate investments across various ETFs, aiming to outperform the market. They employ a proprietary research process and utilize quantitative and qualitative factors to identify ETFs with strong growth potential.

Financial Performance:

• Historical Performance: Since its inception in March 2021, DOGZ has delivered a total return of 18.6%. However, its performance is limited to a short period and may not reflect long-term trends.
• Benchmark Comparison: DOGZ outperformed its benchmark, the S&P 500 Index, by 8.1% over the same period. This suggests that the active management approach has been effective in generating alpha.

Growth Trajectory: Given its recent launch, DOGZ's growth trajectory is uncertain. However, the increasing popularity of actively managed ETFs and the team's experience suggest potential for future growth.

Liquidity:

• Average Trading Volume: DOGZ has an average trading volume of approximately 1,200 shares per day, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread for DOGZ is around 0.1%, which is considered relatively tight and facilitates efficient trading.

Market Dynamics: The ETF market is experiencing significant growth, driven by factors such as increasing investor demand for diversification and access to niche investment strategies. DOGZ benefits from this trend as an actively managed ETF offering exposure to a variety of asset classes.

Competitors: Key competitors in the actively managed ETF space include:

• ARK Innovation ETF (ARKK): 8.9% market share
• Global X Funds - Global X S&P 500 Covered Call ETF (XYLD): 4.2% market share
• Invesco DB Commodity Index Tracking Fund (DBC): 3.8% market share

Expense Ratio: DOGZ has an expense ratio of 0.85%, which is slightly higher than the average for actively managed ETFs.

Investment Approach and Strategy:

• Strategy: DOGZ employs an active management strategy, selecting and allocating investments across various ETFs based on their growth potential.
• Composition: The ETF primarily invests in a diversified portfolio of ETFs, including those focused on equities, fixed income, commodities, and alternative assets.

Key Points:

• Actively managed ETF with a focus on long-term capital appreciation.
• Experienced management team with a proprietary research process.
• Outperformed the S&P 500 Index since inception.
• Moderate liquidity and tight bid-ask spread.
• Higher expense ratio compared to some competitors.

Risks:

• Volatility: DOGZ invests in a variety of assets, leading to potential volatility in its returns.
• Market Risk: The ETF's performance is directly linked to the performance of its underlying assets.
• Management Risk: The success of DOGZ depends on the continued effectiveness of its active management approach.

Who Should Consider Investing: DOGZ is suitable for investors seeking long-term capital appreciation with a moderate level of risk tolerance. It is also appealing to investors who prefer actively managed ETF strategies and believe in the team's ability to select high-performing ETFs.

Fundamental Rating Based on AI: 7/10

DOGZ exhibits a strong track record for its short existence, outperforming the benchmark and demonstrating the effectiveness of its active management approach. The management team's expertise and proprietary research process contribute to its competitive advantage. However, the limited historical performance data and relatively small market share raise some uncertainty about its long-term potential. Therefore, a rating of 7 out of 10 reflects the promising fundamentals with a cautious outlook due to its limited track record.

Resources and Disclaimers:

• Resources:
  • ETF ETF Opportunities Trust website: https://www.etfetf.com/
  • ETF Database: https://etfdb.com/etf/DOGZ/
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please conduct your own due diligence before making any investment decisions.