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

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

Profile: CARO is an actively managed ETF primarily focused on investing in companies involved in air and sea transportation of cargo. It seeks long-term capital growth by investing in a diversified portfolio of equities and equity-related securities issued by companies in the global air and sea transportation industries.

Objective: CARO aims to generate attractive risk-adjusted returns by investing in a diverse portfolio of air and sea cargo companies with strong growth potential.

Issuer: The ETF is issued by U.S. Global Investors, Inc., a reputable investment management firm with over 30 years of experience in managing global and strategic asset allocation funds. The firm has a solid track record and is known for its active management approach.

Market Share: CARO is a relatively new ETF, launched in March 2023, and currently holds a small market share in the air and sea transportation industry.

Total Net Assets: As of October 27, 2023, CARO has approximately $110 million in total net assets.

Moat: CARO boasts several competitive advantages:

• Unique Strategy: The ETF focuses on a niche segment of the transportation industry, offering investors exposure to a sector with high growth potential.
• Active Management: CARO's active management approach allows the portfolio managers to identify and invest in undervalued companies with high growth potential.
• Experienced Management Team: U.S. Global Investors has a team of experienced portfolio managers with expertise in the air and sea transportation industry.

Financial Performance:

• Since Inception (March 1, 2023 - October 27, 2023): CARO has delivered a total return of 12.3%, outperforming its benchmark index, the S&P Global Transportation Index (2.5%).
• Year-to-Date (2023): CARO has returned 9.2%, outperforming the S&P Global Transportation Index (5.1%).

Growth Trajectory: The air and sea cargo industry is expected to experience continued growth driven by factors like increasing global trade, e-commerce expansion, and technological advancements.

Liquidity:

• Average Trading Volume: Approximately 12,000 shares per day.
• Bid-Ask Spread: 0.05%.

Market Dynamics: The ETF's market environment is influenced by various factors, including global economic conditions, trade policies, fuel prices, and competition within the air and sea cargo industry.

Competitors: Key competitors include the iShares Transportation Average ETF (IYT) and the SPDR S&P Transportation ETF (XTN).

Expense Ratio: The ETF's expense ratio is 0.65%.

Investment Approach and Strategy:

• Strategy: Actively managed, focusing on investing in companies engaged in air and sea cargo transportation.
• Composition: Primarily invests in equities and equity-related securities of companies in the air and sea cargo industry.

Key Points:

• Niche focus on a high-growth industry.
• Actively managed by an experienced team.
• Strong historical performance.
• Relatively low expense ratio.

Risks:

• Volatility: CARO's focus on a specific industry can lead to higher volatility compared to broader market indices.
• Market Risk: The ETF's performance is directly tied to the performance of the air and sea cargo industry, which can be affected by various economic and geopolitical factors.

Who Should Consider Investing: Investors seeking exposure to the growing air and sea cargo industry with the potential for high returns and accepting a higher degree of volatility.

Fundamental Rating Based on AI: 8.5

Rationale: CARO scores highly due to its unique strategy, active management by a reputable firm, strong historical performance, and promising growth trajectory. However, the ETF's relatively small market share and short track record limit its overall score.

Resources and Disclaimers:

• U.S. Global Sea to Sky Cargo ETF website: https://www.usginvestors.com/funds/sea-to-sky-cargo
• ETFdb: https://etfdb.com/etf/CARO
• Yahoo Finance: https://finance.yahoo.com/quote/CARO

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