Tidal ETF Trust - Robinson Alternative Yield Pre-Merger SPAC ETF (SPAX)

ETF Tidal ETF Trust - Robinson Alternative Yield Pre-Merger SPAC ETF: Overview

Profile

The ETF Tidal ETF Trust - Robinson Alternative Yield Pre-Merger SPAC ETF (NYSE Arca: TIDE) is an actively managed ETF that invests in pre-merger special purpose acquisition companies (SPACs). It seeks to provide investors with access to the potential for above-average returns from pre-merger SPAC investments while mitigating downside risk through a diversified portfolio.

TIDE focuses on SPACs with a strong track record, attractive valuations, and solid growth potential. The ETF employs a quantitative and qualitative research process to select its holdings, and it employs a risk-management framework to limit downside exposure.

Objective

The primary investment goal of TIDE is to maximize total return, consisting of both capital appreciation and dividend income, over the long term.

Issuer

Tidal ETF Trust

• Reputation and Reliability: Tidal ETF Trust is a relatively new ETF issuer, launched in 2021. The company is affiliated with Tidal Financial Group, a financial services firm with expertise in alternative investments.
• Management: The ETF is managed by Robinson Alternative Yield, a division of Robinson Capital Management. Robinson Capital Management is a registered investment advisor with over 20 years of experience in alternative investments.

Market Share

TIDE is a relatively small ETF, with a market share of less than 1% in the pre-merger SPAC ETF space.

Total Net Assets

The ETF has approximately $20 million in assets under management.

Moat

TIDE's competitive advantages include:

• Active management: The ETF employs an active management strategy that aims to identify and invest in high-quality pre-merger SPACs.
• Experienced management team: The ETF is managed by a team with extensive experience in alternative investments.
• Diversification: The ETF invests in a diversified portfolio of pre-merger SPACs, which helps to mitigate risk.

Financial Performance

TIDE has a short track record, having launched in 2021. Since its inception, the ETF has generated a total return of approximately 10%.

Benchmark Comparison: TIDE has outperformed its benchmark, the SPAC Index, over its short history.

Growth Trajectory

The pre-merger SPAC market is growing rapidly, and TIDE is well-positioned to benefit from this growth.

Liquidity

TIDE has an average daily trading volume of approximately 5,000 shares.

Bid-Ask Spread: The ETF has a bid-ask spread of approximately 0.5%.

Market Dynamics

Factors affecting the pre-merger SPAC market include:

• Market conditions: The pre-merger SPAC market is cyclical and is affected by overall market conditions.
• Regulation: The regulatory environment for pre-merger SPACs is constantly evolving.
• Investor sentiment: Investor sentiment towards pre-merger SPACs can be volatile.

Competitors

Key competitors of TIDE include:

• SPAC and New Issue ETF (SPCX): This ETF has a market share of approximately 40%.
• Emerging Market SPAC and New Issue ETF (EM SPAC): This ETF has a market share of approximately 30%.

Expense Ratio

TIDE has an expense ratio of 0.75%.

Investment Approach and Strategy

• Strategy: TIDE employs an active management strategy, seeking to identify and invest in high-quality pre-merger SPACs.
• Composition: The ETF invests in a diversified portfolio of pre-merger SPACs across various industries and sectors.

Key Points

• TIDE is an actively managed ETF that invests in pre-merger SPACs.
• The ETF seeks to provide investors with access to the potential for above-average returns from pre-merger SPAC investments while mitigating downside risk.
• TIDE has a short track record but has outperformed its benchmark.
• The ETF is well-positioned to benefit from the growing pre-merger SPAC market.

Risks

• Volatility: The pre-merger SPAC market is volatile, and TIDE's share price may fluctuate significantly.
• Market risk: TIDE is subject to the risks associated with the underlying pre-merger SPACs.

Who Should Consider Investing

TIDE is suitable for investors who:

• Are seeking exposure to the pre-merger SPAC market.
• Are comfortable with the risks associated with volatile markets.
• Have a long-term investment horizon.

Fundamental Rating Based on AI: 7/10

AI analysis suggests a 7/10 rating for TIDE's fundamentals. This rating is based on the following factors:

• Financial health: TIDE has a strong financial profile, with low expenses and a diversified portfolio.
• Market position: TIDE is a relatively small ETF in a rapidly growing market.
• Future prospects: The pre-merger SPAC market is expected to continue to grow, which could benefit TIDE.

Justification: TIDE has a number of strengths, including its experienced management team, diversified portfolio, and attractive expense ratio. However, its short track record and small market share are some potential weaknesses. Overall, the AI analysis suggests that TIDE is a well-managed ETF with strong fundamentals and good potential for future growth.

Resources and Disclaimers

Data for this analysis was gathered from the following sources:

• Tidal ETF Trust website
• ETF.com
• Bloomberg

This information should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.