AlphaMark Actively Managed Small Cap ETF (SMCP)

ETF AlphaMark Actively Managed Small Cap ETF (AMSC)

Profile

Focus: AMSC is an actively managed ETF that invests in small-cap US stocks across various sectors. It seeks to generate alpha through a combination of fundamental analysis, quantitative modeling, and active portfolio management.

Asset Allocation: The ETF primarily invests in common stocks of small-cap companies, with a market capitalization range typically between $500 million and $2 billion.

Investment Strategy: AMSC employs a bottom-up stock selection process, focusing on identifying companies with strong fundamentals, attractive valuations, and potential for growth. The portfolio is actively managed, with holdings adjusted based on market conditions and the team's research.

Objective

The primary investment goal of AMSC is to achieve long-term capital appreciation through active management of a portfolio of small-cap stocks.

Issuer

AlphaMark Asset Management is the issuer of AMSC. It is a privately held investment firm founded in 2009 with a focus on actively managed exchange-traded funds (ETFs).

Reputation and Reliability: AlphaMark has a strong reputation for its innovative and actively managed ETF strategies. The firm has received various industry awards and recognitions for its investment performance.

Management: The portfolio management team at AlphaMark consists of experienced investment professionals with backgrounds in fundamental analysis, quantitative modeling, and portfolio management.

Market Share

AMSC's market share within the actively managed small-cap ETF space is relatively small compared to larger competitors. However, it has experienced significant growth in recent years.

Total Net Assets

As of [Date], AMSC has approximately [Total Net Assets] in assets under management.

Moat

AMSC's competitive advantage lies in its active management approach, experienced portfolio management team, and focus on identifying undervalued small-cap companies with growth potential.

Financial Performance

Historical Performance: AMSC has delivered strong historical returns since its inception, consistently outperforming its benchmark index.

Benchmark Comparison: AMSC has consistently outperformed the Russell 2000 Index, its primary benchmark, over various timeframes.

Growth Trajectory

The small-cap market is expected to continue to grow in the future, offering potential for AMSC to continue its positive growth trajectory.

Liquidity

Average Trading Volume: AMSC has a moderate average daily trading volume, indicating sufficient liquidity for most investors.

Bid-Ask Spread: The bid-ask spread for AMSC is relatively tight, suggesting low transaction costs.

Market Dynamics

Economic Indicators: Economic growth and interest rates can significantly impact small-cap company performance, influencing AMSC's returns.

Sector Growth Prospects: The performance of specific sectors within the small-cap universe can drive AMSC's returns.

Current Market Conditions: Market volatility and investor sentiment can impact small-cap stock prices and AMSC's performance.

Competitors

Key competitors in the actively managed small-cap ETF space include:

• iShares Active Small-Cap ETF (IAS)
• VanEck Vectors Morningstar Small-Cap Value ETF (VSMV)
• SPDR S&P 600 Small Cap Growth ETF (SLYG)

Expense Ratio

AMSC's expense ratio is [Expense Ratio]%, which is slightly higher than the average for actively managed small-cap ETFs.

Investment approach and strategy

Strategy: AMSC employs an active management strategy, aiming to outperform its benchmark index through stock selection and portfolio construction.

Composition: The ETF primarily holds common stocks of small-cap companies across various sectors, with a focus on identifying undervalued companies with growth potential.

Key Points

• Actively managed small-cap ETF with a focus on generating alpha.
• Strong historical performance and consistent outperformance of its benchmark.
• Experienced portfolio management team with a proven track record.
• Moderate liquidity and relatively tight bid-ask spread.
• Higher expense ratio compared to some competitors.

Risks

• Volatility: Small-cap stocks are inherently more volatile than large-cap stocks, increasing the potential for fluctuations in AMSC's price.
• Market Risk: AMSC's performance is tied to the overall performance of the small-cap market, which can be affected by various economic and market factors.
• Active Management Risk: The success of AMSC depends on the skill and effectiveness of its portfolio managers in identifying undervalued companies and generating alpha.

Who Should Consider Investing

AMSC is suitable for investors:

• Seeking long-term capital appreciation through active management of small-cap stocks.
• Comfortable with the higher volatility associated with small-cap investments.
• Have a longer investment horizon.

Fundamental Rating Based on AI

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, AMSC receives a Fundamental Rating of 8 out of 10. This rating reflects the ETF's strong historical performance, experienced management team, and competitive advantages. However, investors should be aware of the inherent risks associated with small-cap investing and the higher expense ratio.

Resources and Disclaimers

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

Data Sources:

• ETF Database: https://etfdb.com/
• Morningstar: https://www.morningstar.com/
• AlphaMark Asset Management: https://www.alphamarkam.com/