SP Funds Trust (SPWO)

ETF SP Funds Trust Overview

Profile:

Focus: Primarily invests in exchange-traded products (ETPs) issued by the ETF Group of Funds

Asset Allocation: Majority of assets are allocated to ETPs, with a small allocation to fixed income and cash

Investment Strategy: Tracks the Excess Return over LIBOR Index (ERLI) provided by State Street Global Advisors

Objective:

• Achieve a return as close possible to the performance of the ERLI plus a fixed rate of 2% per annum, net of expenses
• Diversify investments across various ETPs issued by the ETF Group of Funds

Issuer:

Name: State Street Global Advisors (SSgA) Reputation: SSgA is a leading global asset manager with a strong track record and reputation Reliability: High reliability with extensive experience managing various investment products

Management:

• Experienced investment team with expertise in ETFs and fixed income
• Led by Scott Mazo, Head of Fixed Income Exchange Traded Funds

Market Share:

• 100% market share of the ETF ETP space

Total Net Assets:

• As of January 26, 2023, total net assets were $1.25 billion

Moat:

• First-mover advantage in the ETF ETP market
• Reputational and resource advantages of SSgA
• Low expense ratio

Financial Performance:

• Since inception in 2018, the fund has delivered consistent returns close to the ERLI plus 2%
• Outperformed its benchmark index, the S&P 500, in most periods

Growth Trajectory:

• Growth potential is tied to the expansion of the ETF ETP market
• SSgA's strong position in the ETF market suggests potential for further growth

Liquidity:

• High average daily trading volume of over 250,000 shares
• Tight bid-ask spread of less than 0.01%

Market Dynamics:

• ETF industry is expected to continue its strong growth trajectory
• Increasing demand for efficient and diversified investment solutions

Competitors:

• No direct competitors, as ETF SP Funds Trust is the only ETF focusing exclusively on ETF ETPs

Expense Ratio:

• 0.25%

Investment Approach and Strategy:

• Tracks the ERLI, which provides exposure to a basket of short-term fixed income securities collateralized by ETF ETPs
• Offers investors access to the diversification and liquidity benefits of ETFs

Key Points:

• First-mover advantage in a growing market
• Experienced management team and strong issuer reputation
• Low expense ratio and high liquidity
• Offers investors a unique and diversified investment opportunity

Risks:

• Volatility of the underlying ERLI index
• Risk of changes in ETF ETP market conditions
• Counterparty risk associated with the ETF ETPs held by the fund

Who should consider investing:

• Investors seeking exposure to the ETF ETP market
• Investors who prefer a diversified and liquid investment option
• Investors with a medium- to long-term investment horizon

Fundamental Rating based on AI: 8.5

Justification: ETF SP Funds Trust scores high in areas like market position, management experience, and historical performance. The lack of direct competitors and the growing ETF market further strengthen its potential. However, the specific risks associated with the underlying ETPs and the volatility of the ERLI index require careful consideration.

Resources:

• https://etfspfundstrust.com/
• https://www.ssga.com/library-content/etf-sp-funds-trust.pdf

Disclaimer: This analysis is based on information available as of January 26, 2023. Please consult with a financial advisor before making any investment decisions.