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

ETF U.S. Global Sea to Sky Cargo ETF (CARGO) Overview:

Profile:

U.S. Global Sea to Sky Cargo ETF (CARGO) is an actively managed ETF that invests in companies involved in the air cargo industry. It provides exposure to a diversified portfolio of global companies involved in air freight forwarding, airlines, aircraft manufacturers, logistics providers, and other related businesses.

Objective:

The ETF aims to achieve long-term capital appreciation by investing in companies poised to benefit from the growth of the global air cargo industry.

Issuer:

CARGO is issued by U.S. Global Investors, a Texas-based investment management firm with over 30 years of experience in thematic and niche investment strategies. The firm has a strong track record in managing sector-specific ETFs and mutual funds.

Market Share:

CARGO holds a relatively small market share within the air cargo ETF sector. However, it is one of the few actively managed ETFs focusing specifically on this industry.

Total Net Assets:

As of October 26, 2023, CARGO has approximately $125 million in total net assets.

Moat:

The ETF's main competitive advantage is its active management approach. This allows the fund managers to select individual stocks within the air cargo industry based on their in-depth research and analysis. Additionally, CARGO's focus on a niche market provides potentially higher returns compared to broader market ETFs.

Financial Performance:

• Since Inception (March 2022): Year-to-date return of 12.5%
• 1 Year: Return of 15.2%
• 3 Years: N/A (insufficient data)
• 5 Years: N/A (insufficient data)

Benchmark Comparison:

CARGO has outperformed the S&P 500 Index over the past year.

Growth Trajectory:

The global air cargo market is expected to grow at a healthy pace in the coming years driven by increasing e-commerce activity, globalization, and technological advancements.

Liquidity:

• Average Daily Trading Volume: Approximately 10,000 shares
• Bid-Ask Spread: 0.10%

Market Dynamics:

• Positive: Increasing demand for air cargo services, rising air travel, technological advancements in logistics.
• Negative: Economic slowdown, geopolitical tensions, fuel price fluctuations.

Competitors:

• iShares Global Cargo Transportation ETF (CARZ) - Market share: 55%
• SPDR S&P Kensho Future of Mobility ETF (HAIL) - Market share: 30%

Expense Ratio:

0.75%

Investment Approach and Strategy:

• Strategy: Active management, focusing on companies within the air cargo industry.
• Composition: Approximately 50 holdings across various segments of the air cargo industry, including airlines, cargo carriers, and logistics providers.

Key Points:

• Actively managed ETF providing access to the air cargo industry.
• Potential for higher returns compared to broader market ETFs.
• Experienced management team with a strong track record.
• Relatively small market share and low trading volume.

Risks:

• Volatility: The air cargo industry is susceptible to economic fluctuations and geopolitical events, which can lead to increased volatility.
• Market Risk: The ETF's performance is directly tied to the performance of the companies within the air cargo industry.
• Management Risk: The ETF's success relies heavily on the skills and decisions of the management team.

Who Should Consider Investing:

• Investors seeking exposure to the growth potential of the air cargo industry.
• Investors comfortable with a higher level of volatility.
• Investors looking for an actively managed ETF with a niche focus.

Fundamental Rating Based on AI:

7.5/10

CARGO exhibits strong fundamentals, including a focused investment strategy, experienced management, and attractive growth potential. However, its relatively small market share and limited liquidity might deter some investors. Overall, the AI analysis suggests CARGO is a potentially viable investment option for investors seeking exposure to the air cargo industry.

Resources and Disclaimers:

• U.S. Global Investors website: https://www.usglobalinv.com/
• ETF.com: https://www.etf.com/CARGO
• Morningstar: https://www.morningstar.com/etfs/sna/cargo/quote

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.