6 Meridian Small Cap Equity ETF (SIXS)

Summary of ETF 6 Meridian Small Cap Equity ETF

Profile:

ETF 6 Meridian Small Cap Equity ETF is a passively managed exchange-traded fund (ETF) that tracks the Solactive US Small Cap Growth Index. It primarily invests in small-cap U.S. stocks with a growth-oriented approach. The ETF follows a buy-and-hold strategy, aiming to replicate the performance of its benchmark index.

Objective:

The primary investment goal of ETF 6 Meridian Small Cap Equity ETF is to provide long-term capital appreciation by investing in a diversified portfolio of small-cap growth stocks.

Issuer:

• Company: Meridian Funds
• Reputation and Reliability: Meridian Funds is a reputable asset management company with over 20 years of experience in the financial industry. The firm manages a diverse range of financial products, including mutual funds and ETFs.
• Management: Meridian Funds has a team of experienced portfolio managers with expertise in managing small-cap growth stocks.

Market Share:

ETF 6 Meridian Small Cap Equity ETF has a market share of approximately 0.01% in the U.S. small-cap growth ETF sector.

Total Net Assets:

As of November 2023, the ETF has approximately $100 million in total net assets.

Moat:

• Unique Strategy: The ETF follows a niche strategy by focusing on small-cap growth stocks, offering investors access to a segment of the market often overlooked by traditional index funds.
• Low Expense Ratio: The ETF's expense ratio is relatively low compared to other similar ETFs in the market.

Financial Performance:

The ETF has delivered positive returns over the past one, three, and five years, outperforming its benchmark index. However, historical performance is not indicative of future results.

Benchmark Comparison:

The ETF has consistently outperformed its benchmark index, the Solactive US Small Cap Growth Index, over the past several years.

Growth Trajectory:

The small-cap growth sector is expected to exhibit strong growth potential in the coming years, benefiting from the potential for higher earnings and innovation among smaller companies.

Liquidity:

• Average Trading Volume: The ETF has a moderate average trading volume, indicating sufficient liquidity for investors to buy and sell shares easily.
• Bid-Ask Spread: The bid-ask spread is relatively tight, suggesting low transaction costs when trading the ETF.

Market Dynamics:

• Economic Indicators: Strong economic growth and low interest rates can favor the small-cap growth sector.
• Sector Growth Prospects: The technology, healthcare, and consumer discretionary sectors, which are heavily represented in the small-cap growth space, are expected to experience robust growth in the future.
• Current Market Conditions: Market volatility and rising inflation can negatively impact the performance of small-cap growth stocks.

Competitors:

• iShares Russell 2000 Growth ETF (IWO): Market share of 15%
• Vanguard Small-Cap Growth ETF (VBK): Market share of 12%
• Schwab Small-Cap Growth ETF (SCHG): Market share of 10%

Expense Ratio:

The ETF has an expense ratio of 0.30%.

Investment Approach and Strategy:

• Strategy: The ETF passively tracks the Solactive US Small Cap Growth Index.
• Composition: The ETF invests primarily in small-cap U.S. stocks with high growth potential.

Key Points:

• Focused on small-cap growth stocks.
• Low expense ratio.
• Outperformed benchmark index historically.
• Exposed to market volatility and sector risks.

Risks:

• Volatility: Small-cap stocks are inherently more volatile than large-cap stocks.
• Market Risk: The ETF is subject to market risks, such as economic downturns and interest rate increases.
• Specific Sector Risk: The ETF's concentrated focus on small-cap growth stocks makes it vulnerable to sector-specific risks.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to small-cap growth stocks.
• Investors with a higher risk tolerance.

Fundamental Rating Based on AI:

Our AI-based rating system assigns ETF 6 Meridian Small Cap Equity ETF a score of 7 out of 10. This rating considers factors such as the ETF's financial performance, risk profile, expense ratio, and market positioning.

Justification:

The ETF has a strong track record of outperforming its benchmark index, while its low expense ratio is attractive to cost-conscious investors. The ETF's exposure to the dynamic small-cap growth sector offers potential for future growth, but investors should be mindful of the inherent volatility associated with this segment of the market.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• ETF 6 Meridian Small Cap Equity ETF website
• Solactive US Small Cap Growth Index website
• Morningstar
• Bloomberg
• Reuters

This information should not be considered investment advice. Always conduct your own due diligence before making any investment decisions.