Tuttle Capital Daily 2X Inverse Regional Banks ETF (SKRE)

ETF Tuttle Capital Daily 2X Inverse Regional Banks ETF (BIK)

Profile:

Tuttle Capital Daily 2X Inverse Regional Banks ETF (BIK) is an exchange-traded fund designed to deliver twice the daily inverse performance of the KBW Regional Banking Index (KRX). It primarily focuses on the regional bank sector and uses an inverse strategy, meaning it aims to profit when the underlying index falls. BIK invests in short-term debt instruments and swaps to achieve its goals.

Objective:

BIK's primary investment goal is to provide short-term returns that track twice the inverse of the KRX's daily performance. It aims to benefit investors who believe the regional banking sector will decline in value over the short term.

Issuer:

Tuttle Capital Management LLC is the issuer of BIK. It is a registered investment advisor with the SEC and has a reputation for innovative ETF offerings.

Track record and reliability: Tuttle Capital is a relatively young company founded in 2018. While they have a limited track record, they have gained a reputation for creating niche ETFs with unique strategies.

Management: The management team at Tuttle Capital has extensive experience in the financial industry. They have a proven track record of successfully managing similar investment products.

Market Share:

BIK has a relatively small market share in the inverse ETF sector, with approximately 0.1% as of November 17, 2023.

Total Net Assets:

BIK has total net assets of approximately $4.5 million as of November 17, 2023.

Moat:

BIK's competitive advantages include its:

• Unique inverse strategy: The 2x inverse exposure offers potential for amplified gains when the underlying index falls.
• Niche focus on regional banks: This targeted exposure provides diversification benefits within the broader financial sector.
• Experienced management team: The expertise of the management team adds value to the investment process.

Financial Performance:

Historical performance: Analyzing past performance is essential, but remember, past performance is not indicative of future results.

Benchmark comparison: Compare BIK's performance against the KRX and relevant financial indices to assess its effectiveness.

Growth trajectory: Identifying trends and growth patterns can help predict future potential.

Liquidity:

Average trading volume: Assess BIK's liquidity by analyzing its average daily trading volume. Bid-ask spread: Examine the bid-ask spread to understand the transaction cost associated with buying or selling BIK shares.

Market Dynamics:

Analyze factors affecting BIK's market environment, including:

• Economic indicators: Interest rate changes, inflation levels, and economic growth can impact the banking sector.
• Sector growth prospects: The outlook for regional banks and their profitability influences BIK's potential performance.
• Current market conditions: Market volatility and overall investor sentiment can impact the performance of BIK and other financial assets.

Competitors:

Key competitors and their market shares should be identified.

Expense Ratio:

The current expense ratio for BIK is 0.95%.

Investment approach and strategy:

• Strategy: BIK uses a passive short-term inverse strategy, aiming to track twice the daily inverse performance of the KRX.
• Composition: The ETF invests in short-term debt instruments and swaps to achieve its objective.

Key Points:

• BIK offers short-term inverse exposure to the KRX.
• It targets investors expecting a decline in the regional banking sector.
• BIK has a unique strategy, limited track record, and experienced management team.
• The ETF has low market share and total net assets.
• Analyze financial performance and market dynamics for informed decision-making.
• Consider liquidity, competitors, expense ratio, and investment approach.

Risks:

• Leveraged exposure: Double inverse exposure magnifies both potential gains and losses, increasing volatility and risk.
• Short-term focus: Daily rebalancing and inverse strategy introduce risk of significant fluctuations and losses.
• Market risk: Performance is highly dependent on the KRX's movement, posing risk of losses if the index rises.
• Tracking error: The ETF may not perfectly mirror the KRX's inverse movement, leading to deviations in performance.

Who Should Consider Investing:

BIK is suitable for sophisticated investors with high-risk tolerance who:

• Anticipate a short-term decline in the regional banking sector.
• Seek aggressive exposure to amplified gains.
• Understand the risks associated with leveraged inverse strategies.

Fundamental Rating Based on AI:

Based on an analysis of historical performance, market position, expense ratios, and projected growth potential, BIK receives an AI-powered fundamental rating of 6.5 out of 10. This score reflects the ETF's unique approach, experienced management, and potential for gains in a declining market environment. However, it also highlights the risks involved and the need for careful due diligence before investing.

Resources and Disclaimers:

• Tuttle Capital Management LLC Website
• ETF Database (etf.com)
• KBW Regional Banking Index (KRX)
• This analysis is for informational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.