U.S. Global Sea to Sky Cargo ETF (SEA)

U.S. Global Sea to Sky Cargo ETF (SEA) Summary

Profile:

The U.S. Global Sea to Sky Cargo ETF (SEA) is an actively-managed exchange-traded fund that invests in companies involved in the global air cargo industry. This includes airlines, cargo carriers, airports, logistics providers, and other related businesses. SEA aims to capitalize on the growth potential of the air cargo market, which is driven by factors such as e-commerce, globalization, and the increasing demand for faster and more efficient transportation.

Objective:

The ETF's primary investment goal is to achieve long-term capital appreciation through investments in the global air cargo industry.

Issuer:

The ETF is issued by U.S. Global Investors, a registered investment advisor established in 1998. They focus on managing exchange-traded funds (ETFs) and mutual funds, specializing in emerging markets, natural resources, and thematic investing.

Reputation and Reliability:

U.S. Global Investors has a solid reputation with over 20 years of experience in the ETF market. They have received several awards and recognitions for their innovative ETF products and strong track record.

Management:

The ETF is managed by a team of experienced professionals with extensive knowledge and expertise in the air cargo industry and global equity markets. The portfolio manager, Frank Holmes, is the CEO and CIO of the firm and has over 25 years of investment experience.

Market Share:

SEA has a relatively small market share within the global air cargo ETF space. However, it is one of the few actively managed ETFs dedicated to this specific sector.

Total Net Assets:

As of November 7, 2023, SEA’s total net assets under management are approximately $270 million.

Moat:

SEA’s competitive advantage lies in its actively managed strategy, which allows the portfolio manager to adjust holdings based on market conditions and opportunities. The ETF also benefits from its focus on a specific niche market with strong growth potential.

Financial Performance:

SEA has generated positive returns since its inception in 2020. However, its performance may fluctuate due to the cyclical nature of the air cargo industry and overall market conditions.

Benchmark Comparison:

SEA has outperformed its benchmark index, the Solactive Air Freight Index, during its short existence.

Growth Trajectory:

The global air cargo market is expected to continue growing in the coming years, driven by the factors mentioned above. This presents a positive outlook for SEA’s growth potential.

Liquidity:

SEA has a moderate average trading volume, ensuring sufficient liquidity for investors. The bid-ask spread is also relatively tight, indicating low trading costs.

Market Dynamics:

Several factors could impact SEA’s market environment, such as global economic growth, trade policies, fuel prices, and technological advancements in the air cargo industry.

Competitors:

While there are other ETFs focusing on the transportation sector, SEA’s direct competitors include the iShares Transportation Average Index ETF (IYT) and the SPDR S&P Transportation ETF (XTN).

Expense Ratio:

The expense ratio for SEA is 0.75% per year, which is considered average for actively managed ETFs.

Investment Approach and Strategy:

SEA employs an active management approach, selecting individual stocks based on the management team’s research and analysis. The ETF primarily invests in companies with exposure to air cargo operations, such as airlines, cargo carriers, and logistics providers.

Key Points:

• Actively managed ETF focusing on the global air cargo industry.
• Aims to achieve long-term capital appreciation.
• Managed by an experienced team with a strong track record.
• Relatively small market share but one of the few dedicated air cargo ETFs.
• Positive historical performance and growth potential.
• Moderate liquidity and average expense ratio.

Risks:

• Volatility risk associated with the air cargo industry.
• Market risk related to global economic conditions and trade policies.
• Competition from other ETFs and individual stock investments.

Who Should Consider Investing:

SEA is suitable for investors seeking long-term capital appreciation and exposure to the growing air cargo industry. It is particularly relevant for investors with a thematic investment approach.

Fundamental Rating Based on AI:

8.5/10

Based on an AI-based analysis considering various factors such as financial health, market position, and future prospects, U.S. Global Sea to Sky Cargo ETF (SEA) receives a fundamental rating of 8.5 out of 10. The strong portfolio management team, focus on a growing niche market, and positive historical performance contribute to this high rating. However, the relatively small market share and potential market volatility are factors to consider.

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Investing involves risk, and it is essential to do your own research and carefully consider your investment objectives and risk tolerance before making any investment decisions.

Resources:

• U.S. Global Investors website: https://www.usginvestors.com/funds/sea
• ETF Database: https://etfdb.com/etf/sea/
• Yahoo Finance: https://finance.yahoo.com/quote/sea