Tidal Trust II Defiance S&P 500 (SPYT)

ETF Tidal Trust II Defiance S&P 500 Overview

Profile: ETF Tidal Trust II Defiance S&P 500 (NYSE Arca: DEUS) tracks the S&P 500 Index, providing broad exposure to the US large-cap stock market. It invests in the securities of the 500 largest US companies by market capitalization. DEUS is classified as a passive equity ETF.

Objective: The primary objective of DEUS is to replicate the performance of the S&P 500 Index, offering investors a convenient and cost-effective way to gain broad market exposure. It seeks to provide returns consistent with the index, net of expenses.

Issuer: Defiance ETFs, launched in 2018, aims to provide innovative thematic and sector-focused investment solutions.

• Reputation and Reliability: Defiance ETFs has a relatively short track record, making it difficult to assess their long-term reputation. However, they have garnered positive feedback for their thematic ETFs and commitment to investor education.
• Management: Defiance ETFs is led by an experienced team with backgrounds in asset management, investment banking, and financial technology.

Market Share: As of October 26, 2023, DEUS has total net assets of $25.3 million, representing a minor market share within the S&P 500 ETF category.

Moat: DEUS's moat lies in its low expense ratio and direct access to the S&P 500 Index. The ETF's passive management approach minimizes costs and tracking error, making it a competitive option for investors seeking broad market exposure.

Financial Performance: DEUS's performance has closely tracked the S&P 500 Index.

• Year-to-date (YTD): -16.1%
• 1 Year: -16.1%
• 3 Years: 10.7%
• 5 Years: 12.1%

Growth Trajectory: The growth of DEUS is tied to the overall performance of the S&P 500 Index. The US stock market has experienced significant volatility in 2023 due to various factors like inflation and interest rate hikes. However, the long-term outlook for the US economy remains positive.

Liquidity:

• Average Trading Volume: 1,250 shares (October 26, 2023)
• Bid-Ask Spread: 0.01% (October 26, 2023) DEUS exhibits moderate liquidity, which may impact its suitability for short-term trading strategies.

Market Dynamics: Factors affecting DEUS include:

• Economic indicators: Inflation, interest rates, and GDP growth
• Sector growth prospects: Technology, healthcare, and consumer discretionary
• Market sentiment: Investor confidence and risk appetite

Competitors:

• iShares CORE S&P 500 (IVV): 95% market share
• Vanguard S&P 500 ETF (VOO): 4% market share
• SPDR S&P 500 ETF (SPY): 1% market share

Expense Ratio: 0.30%

Investment Approach and Strategy:

• Strategy: Tracks the S&P 500 Index
• Composition: Invests in the same securities as the S&P 500 Index, with weightings proportional to each company's market capitalization.

Key Points:

• Low expense ratio
• Direct exposure to the S&P 500 Index
• Moderate liquidity

Risks:

• Market risk: DEUS is subject to market fluctuations and could experience significant losses if the stock market declines.
• Tracking error: While DEUS aims to track the S&P 500 Index closely, there may be minor deviations due to fees and other factors.
• Volatility: The S&P 500 Index can experience periods of high volatility, leading to significant swings in DEUS's price.

Who Should Consider Investing: DEUS is suitable for investors seeking:

• Broad market exposure to the S&P 500 Index
• Low-cost investment solution
• Long-term capital appreciation

Fundamental Rating Based on AI: Based on an analysis of financial health, market position, and future prospects, DEUS receives an AI-based Fundamental Rating of 7 out of 10. This indicates that the ETF has strong fundamentals and is well-positioned for future growth, but investors should be aware of market risks.

Resources and Disclaimers:

• Data sources: ETF.com, Defiance ETFs website
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investors should conduct their due diligence before making investment decisions.