Bushido Capital US Equity ETF (SMRI)

Summary of Bushido Capital US Equity ETF

Profile:

The Bushido Capital US Equity ETF is an actively managed exchange-traded fund that invests primarily in US equities across various sectors. It follows a quantitative approach, utilizing a proprietary algorithm to select undervalued stocks with strong growth potential. The ETF aims to outperform the broader US equity market and offer investors access to a diversified portfolio of high-conviction stocks.

Objective:

The primary investment goal of the Bushido Capital US Equity ETF is to achieve long-term capital appreciation by investing in a portfolio of US equities with strong growth potential. The ETF seeks to outperform the S&P 500 index on a risk-adjusted basis.

Issuer:

The issuer of the Bushido Capital US Equity ETF is Bushido Capital Management, a quantitative asset management firm based in New York City. The firm has a team of experienced portfolio managers and data scientists with expertise in quantitative analysis and stock selection.

Market Share and Total Net Assets:

The Bushido Capital US Equity ETF is a relatively new ETF with a market share of approximately 0.05% in the US equity ETF market. Its total net assets are currently around $100 million.

Moat:

The ETF's competitive advantage lies in its proprietary quantitative investment approach. The algorithm utilizes a combination of fundamental and technical analysis to identify undervalued stocks with strong growth potential. This approach allows the ETF to invest in a diversified portfolio of high-conviction stocks, potentially leading to superior long-term performance.

Financial Performance:

Since its inception, the Bushido Capital US Equity ETF has generated an annualized return of 15%, outperforming the S&P 500 index by 5%. However, it is important to note that past performance is not indicative of future results.

Liquidity:

The ETF has an average daily trading volume of approximately 100,000 shares, indicating moderate liquidity. The bid-ask spread is typically around 0.1%, indicating relatively low trading costs.

Market Dynamics:

The ETF's performance is primarily influenced by the overall US equity market conditions, economic indicators, and sector-specific factors.

Competitors:

Key competitors include the iShares Core S&P 500 ETF (IVV), Vanguard S&P 500 ETF (VOO), and SPDR S&P 500 ETF Trust (SPY). These ETFs offer similar exposure to the US equity market but follow different investment strategies.

Expense Ratio:

The Bushido Capital US Equity ETF has an expense ratio of 0.75%, which is slightly higher than the average expense ratio for actively managed US equity ETFs.

Investment Approach and Strategy:

The ETF follows an active management approach, utilizing a quantitative algorithm to identify undervalued stocks with strong growth potential. The portfolio consists primarily of US equities across various sectors.

Key Points:

• Actively managed US equity ETF.
• Invests in undervalued stocks with strong growth potential.
• Outperformed the S&P 500 index since inception.
• Moderate liquidity and relatively low trading costs.
• Higher expense ratio compared to some competitors.

Risks:

• Market risk: The ETF's value is subject to fluctuations in the overall market.
• Volatility: The ETF's value can be more volatile than the broader market.
• Active management risk: The ETF's performance depends on the success of its investment strategy.

Who Should Consider Investing:

This ETF is suitable for investors seeking long-term capital appreciation through exposure to a diversified portfolio of US equities. Investors should be comfortable with the risks associated with actively managed ETFs and the potential for volatility.

Fundamental Rating Based on AI:

Based on an AI-based analysis considering various factors such as financial health, market position, and future prospects, the Bushido Capital US Equity ETF receives a 7 out of 10. The ETF's strong performance, unique investment approach, and experienced management team are positive factors. However, the relatively small asset base and higher expense ratio are considered drawbacks.

Resources and Disclaimers:

This analysis is based on information gathered from the following sources:

• Bushido Capital Management website
• ETF.com
• Morningstar

This information should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions.