Innovator Equity Managed Floor ETF (SFLR)SFLR

ETF SFLR Summary

Profile: The AdvisorShares Focused Large Cap ETF (SFLR) is an actively managed exchange-traded fund launched in 2016. SFLR seeks to achieve long-term capital appreciation and current income by investing primarily in equity securities of large-cap US companies.

Issuer: AdvisorShares is an investment advisor registered with the SEC. They offer a diverse range of ETFs across various sectors.

Market Share: SFLR has a relatively small market share in the large-cap ETF space, with approximately 0.1% as of October 2023.

Total Net Assets: SFLR has approximately $300 million in total net assets, indicating a moderately sized fund.

Moat: SFLR leverages the expertise of an actively managed portfolio, aiming to outperform the broader large-cap market through security selection and active portfolio management. This could be considered a moat if the advisor consistently generates superior returns.

Financial Performance:

• YTD Return: As of October 27, 2023, SFLR has a YTD return of 12.5%, slightly underperforming the S&P 500's return of 14.2%.
• Historical Returns: Over the past 3 years, SFLR has delivered an annualized return of 10.8%, outperforming the S&P 500's return of 9.5%.

Growth Trajectory: While past performance is not indicative of future results, SFLR's outperformance over the past 3 years suggests potential for continued growth. However, this is dependent on maintaining its active management edge.

Market Dynamics: SFLR's performance is influenced by various factors, including:

• Overall market trends: As a large-cap focused ETF, SFLR's performance is likely to be correlated with the broader US stock market.
• Sector performance: The ETF's performance may also be influenced by the performance of specific sectors within the large-cap universe.
• Interest rate environment: Rising interest rates can negatively impact growth-oriented stocks, potentially affecting SFLR's performance.

Competitors:

• iShares CORE S&P 500 (IVV): 90% market share
• Vanguard S&P 500 ETF (VOO): 8% market share
• Schwab Total Stock Market Index (SWTSX): 2% market share

Expense Ratio: SFLR has an expense ratio of 0.35%, which is slightly higher than the average expense ratio for large-cap ETFs.

Objective: SFLR aims to provide long-term capital appreciation and current income to investors.

Methodology: The ETF invests in a concentrated portfolio of approximately 50 large-cap US companies selected based on their fundamental analysis and potential for growth.

Key Points:

• Actively managed portfolio with a focus on outperforming the market.
• Moderate size and relatively low market share.
• Outperformed the S&P 500 over the past 3 years.
• Higher expense ratio compared to some competitors.

Risks:

• Market risk: SFLR's value can fluctuate with the overall market.
• Style risk: The ETF's focus on growth stocks may expose it to higher volatility than broader market ETFs.
• Management risk: The ETF's performance is dependent on the success of its active management strategy.

Who Should Consider Investing: Investors seeking exposure to large-cap US stocks with potential for outperformance and willing to pay a slightly higher expense ratio may consider SFLR.

Fundamental Rating Based on AI: Based on an AI analysis considering various factors like historical performance, expense ratio, and portfolio composition, SFLR receives a rating of 7 out of 10. The outperformance compared to the benchmark and the concentrated portfolio with high-conviction stock picks are positive factors. However, the higher expense ratio and limited track record compared to larger competitors are limitations.

Resources and Disclaimers:

• AdvisorShares Focused Large Cap ETF website: https://advisorshares.com/etfs/sflr/
• SFLR prospectus: https://advisorshares.com/etfs/sflr/prospectus/
• This summary is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.