Two Roads Shared Trust - LeaderShares Equity Skew ETF (SQEW)

Overview

The LeaderShares Equity Skew ETF (ticker SKEE) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Halbert Equity Skew Index. The ETF invests primarily in U.S. equities while implementing an options strategy to generate income and potentially reduce volatility.

Reputation and Reliability

Two Roads Shared Trust is a relatively new ETF provider. Their reputation is still developing, and reliability needs to be assessed over a longer period.

Management Expertise

Information regarding specific expertise of the management team directly responsible for SKEE requires further research but is likely experienced in options and equity markets.

Goal

The primary investment goal of SKEE is to track the Halbert Equity Skew Index and to generate income through an options overlay strategy.

Investment Approach and Strategy

Strategy: SKEE uses a passive indexing strategy combined with active options management. It aims to capture equity market returns while enhancing income and potentially mitigating downside risk.

Composition The ETF holds primarily U.S. equities across various sectors, with a portion of its portfolio allocated to options contracts.

Market Share: SKEEu2019s market share within the skew-focused ETF segment is relatively small, suggesting less adoption compared to larger, more established funds.

Total Net Assets (AUM): 23325080

Key Competitors

• Simplify US Equity PLUS Convexity ETF (SPCX)

Competitive Landscape

The competitive landscape involves other ETFs that utilize options strategies to enhance income or reduce risk. SKEE's advantage lies in its specific index tracking and options implementation. Its disadvantage is its smaller AUM and less established track record compared to competitors like SPCX.

Historical Performance: Historical performance data needs to be consulted from reliable financial sources to provide accurate returns and volatility metrics. Past performance is not indicative of future results.

Benchmark Comparison: SKEE's performance should be compared to the Halbert Equity Skew Index to evaluate how closely it tracks the benchmark. A thorough analysis must consider tracking error.

Expense Ratio: 0.79

Average Trading Volume

Average trading volume can fluctuate, but typically SKEE has a low to moderate average trading volume, which could impact order execution costs.

Bid-Ask Spread

The bid-ask spread needs to be monitored as it directly affects the cost of buying and selling shares, and it can vary based on market conditions and trading volume.

Market Environment Factors

Economic indicators like interest rates, inflation, and GDP growth affect overall equity market performance, impacting SKEE. Sector-specific growth prospects within the equity portfolio influence its returns, and current market volatility affects options pricing and strategy outcomes.

Growth Trajectory

SKEE's growth trajectory will likely depend on investor demand for strategies that offer both equity exposure and income generation via options. Changes to the ETF's underlying holdings and options strategy implementation could also influence its performance.

Competitive Edge

SKEE's competitive advantage rests in its Halbert Equity Skew Index tracking and the options strategy implemented to generate income. The ETF's approach aims to capture equity returns while seeking to mitigate downside risk through options. Its targeted approach towards skewness allows investors to diversify their portfolio in a unique way. The active management of the option component could potentially contribute alpha relative to passive strategies.

Volatility

SKEE's historical volatility needs to be assessed, considering its equity holdings and options overlay. Option strategies can either reduce or amplify volatility, depending on their implementation and market conditions.

Market Risk

Specific risks associated with SKEE's underlying assets include equity market risk (general market downturns) and options-related risks (e.g., changes in implied volatility, early exercise). A concentration risk would also apply depending on sector allocation.

Ideal Investor Profile

The ideal investor for SKEE is someone seeking equity exposure with an added focus on generating income via options. Investors should understand the risks associated with options and have a moderate risk tolerance.

Market Risk

SKEE is likely more suitable for long-term investors who seek income and modest capital appreciation, rather than active traders looking for short-term gains.

SKEE provides exposure to U.S. equities combined with an options overlay aimed at generating income and potentially reducing volatility. It tracks the Halbert Equity Skew Index, providing a specific approach to equity investing. Investors should consider the ETF's smaller AUM and relatively new track record. While it may offer unique benefits, thorough due diligence on its performance, risks, and fees is recommended before investing.

Data Sources:

• Leadershares.com
• SEC Filings
• Third-party Financial Data Providers (e.g., Bloomberg, Morningstar) - Specific data requires further research.

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor. Past performance is not indicative of future results. Risk of loss exists.