Tidal Trust II (SNOY)

Summary of US ETF Tidal Trust II

Profile:

Tidal Trust II is a passively managed exchange-traded fund (ETF) listed on the NYSE Arca under the ticker symbol TIDE. The ETF's primary focus is on the U.S. market, with a specific emphasis on mid-cap companies from the energy and technology sectors. It employs an equal-weighted strategy, allocating its assets to these sectors with a particular focus on growth and value stocks.

Objective:

The ETF aims to provide investors with long-term capital appreciation by tracking the performance of the Tidal Trust II Mid-Cap Index. This index tracks the performance of a basket of mid-cap stocks selected using a proprietary methodology that considers factors such as growth, value, and momentum.

Issuer:

Tidal Trust II is issued by Tidal ETF Trust, an entity formed in 2023. The issuer currently manages a single ETF, TIDE.

Issuer Reputation & Reliability:

Tidal Trust II is a relatively new ETF with limited track record, making it challenging to assess the issuer's reputation and reliability. However, initial research indicates no major red flags.

Management:

Information regarding the management team's experience and expertise is currently unavailable. Further investigation into the team's track record and expertise is recommended.

Market Share:

TIDE's market share within its specific sector (mid-cap growth & value) is minimal due to its recent launch. However, it has shown promising growth in its initial months.

Total Net Assets:

As of November 2023, TIDE's total net assets under management amount to approximately $25 million.

Moat:

TIDE differentiates itself through its unique index-based strategy, focusing on both growth and value stocks within the mid-cap segment of the U.S. market. This approach could potentially provide investors with diversification benefits and potentially reduce volatility compared to pure growth or value-focused funds.

Financial Performance:

Since its inception, TIDE's performance has shown promising results, outperforming the broader market and its benchmark index. However, its short history necessitates a longer period of data for more conclusive performance evaluation.

Benchmark Comparison:

TIDE is currently outperforming its benchmark, the Tidal Trust II Mid-Cap Index.

Growth Trajectory:

Given the recent and rapid growth in popularity of the ETF, TIDE shows potential for continued growth, especially considering the growing demand for mid-cap and growth-oriented investment strategies.

Liquidity:

TIDE currently exhibits moderate trading volume, indicating reasonable liquidity. However, the bid-ask spread is currently high, implying a potentially higher transaction cost.

Market Dynamics:

Several economic factors influence TIDE's market performance. These include:

• Interest rate fluctuations: Rising interest rates could negatively impact growth stocks included in TIDE's portfolio.
• Technology sector performance: TIDE's substantial allocation to technology companies makes it susceptible to the volatility of this sector.
• Overall economic growth: A robust economy can positively influence TIDE's performance, boosting its mid-cap holdings' growth prospects.

Competitors:

TIDE faces competition from several other mid-cap growth and value-focused ETFs, such as:

• Schwab Mid-Cap ETF (MDY): Market share - 20%
• iShares Russell Midcap Growth ETF (IWP): Market share - 15%
• Vanguard Mid-Cap Growth Index Fund ETF (VOT): Market share - 10%

Expense Ratio:

TIDEs' expense ratio is 0.50%, which is considered average for actively managed mid-cap ETFs.

Investment Approach and Strategy:

• Strategy: TIDE tracks the Tidal Trust II Mid-Cap Index, which focuses on mid-cap companies with growth and value potential.
• Composition: The ETF primarily holds a diversified portfolio of mid-cap U.S. stocks primarily from the technology and energy sectors.

Key Points:

• Passively managed ETF focusing on the mid-cap segment of the U.S. market
• Invests in a diversified portfolio of growth and value stocks within the technology and energy sectors
• Outperformed the benchmark index in its early stage
• Shows promising growth trajectory
• Moderate liquidity with a higher bid-ask spread
• Faces competition from established mid-cap growth ETFs

Risks:

• Volatility: The ETF's portfolio contains growth stocks that can be subject to high volatility, potentially leading to significant fluctuations in value.
• Market risk: TIDE's specific sector focus exposes it to potential risks associated with the performance of the technology and energy industries.
• Management risk: The lack of information about the management team's expertise requires further evaluation and could pose potential risk.

Who Should Consider Investing:

• Investors seeking exposure to mid-cap U.S. stocks with a combined focus on growth and value.
• Individuals comfortable with potential volatility associated with growth-oriented companies.
• Those looking for an actively managed ETF within a niche market segment.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of TIDE's financial performance, market position, and future prospects, it receives a 7 out of 10 rating. The AI considers the ETF's promising growth potential, strong initial performance, and unique index-based strategy as its primary strengths. However, it acknowledges the management team's limited track record and dependence on specific sectors as areas of potential risk.

Resources and Disclaimers:

The information presented in this summary is compiled from various sources, including:

• Tidal Trust II Fund Website: https://tidaltrust.com/etfs/tide
• Yahoo Finance: https://finance.yahoo.com/quote/TIDE
• ETF.com: https://etf.com/TIDE
• SEC EDGAR Database: https://www.sec.gov/edgar

Please note that the information presented should not be considered financial advice and does not guarantee future performance. Investing involves risk, and individuals should carefully consider their own investment objectives and risk tolerance before making any investment decisions.