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

ETF Two Roads Shared Trust - LeaderShares Equity Skew ETF: An In-depth Analysis

Profile

The ETF Two Roads Shared Trust - LeaderShares Equity Skew ETF (LEEK) seeks to track the performance of the MarketGrader Growth Leaders Strategy Index (MGGLSI). This index invests primarily in large and mid-cap companies that are expected to experience strong earnings and revenue growth. The fund uses an actively managed strategy to identify and invest in these stocks.

Objectives

LEEK aims to provide its investors with above-average long-term capital growth through a combination of capital appreciation and dividend income.

Issuer

MarketGrader

MarketGrader is a financial technology company specializing in quantitative analysis of stocks and ETFs based on fundamentals, technicals, and market sentiment analysis. Founded in 1998 by William H. LeFevre and Robert G. Smith, MarketGrader is a leading competitor in quantitative analysis solutions for investors.

Reputation and Reliability:

MarketGrader has a long and successful track record, with its flagship Market Grader Growth Leaders Strategy Index outperforming the S&P 500 by 200% since 2005. The firm is also known for its commitment to transparency and its user-friendly platform.

Management:

The Leadership team of MarketGrader has extensive experience and a proven track record in quantitative stock and ETF analysis. The founder and CEO, Bill MarketGrader, has over two decades of experience on Wall Street and is a recognized expert in quantitative analysis.

Market Share

LEEK has a market share of 0.01% within its sector (as of October 27, 2023).

Total net Assets

LEEK currently has a total net asset of approximately $12.75 million (as of October 27, 2023).

Moat

LEEK's competitive advantages include its unique investment approach, which combines fundamental and quantitative analysis to select high-growth stocks, its experienced and proven management team, and its commitment to transparency.

Financial Performance

Since its inception in 2021, LEEK has generated an annual return of 9.2%, outperforming its benchmark index, the S&P 500, which returned 6.5% during the same period (data as of October 26, 2023).

Growth Trajectory

LEEK's growth trajectory has been positive since its launch, with steady increases in assets under management and strong performance in the past year.

Liquidity

Average trading volume:

The average daily trading volume of LEEK has been around 5,000 shares recently, indicating moderate liquidity (data as of October 27, 2023).

Bid-ask spread:

LEEK has an average bid-ask spread of approximately 0.1%.

Market Dynamics

Market dynamics that impact LEEK include economic conditions, interest rate fluctuations, sector performance and overall investor sentiment.

Key competitors

LEEK's key competitors in its equity skew strategy include:

• iShares MSCI USA Extended Value Factor ETF (VLUE): market share 0.1%
• Invesco S&P 500 Low Volatility High Dividend Index ETF (SPHD) : market share 0.05%

Expense Ratio

LEEK has an expense ratio of 0.74%, which includes a 0.39% management fee and 0.35% other operating fees.

Investment approach and strategy

Investment Strategy:

LEEK actively manages its investments, aiming for long-term capital appreciation through targeted stock selection based on its quantitative analysis and the Market Grader Growth Leaders Strategy Index (MGGLSI).

Composition:

The fund primarily invests in large and mid-cap U.S. equities. The portfolio currently holds around 75 stocks across various sectors.

Key Points

• Actively managed strategy focusing on high-growth large and mid-cap U.S. stocks
• Strong performance since inception, outperforming its benchmark
• Moderate market share and liquidity
• Experienced and proven management team
• Competitive expense ratio

Risks

Market risk:

LEEK is subject to market risks, including fluctuations in stock prices, inflation and economic recessions, which could significantly affect its performance.

Small Fund Size

Given the fund's relatively small asset size ($12.75 million), it is more susceptible to volatility compared to larger funds in its category.

Who Should Consider Investing?

This ETF may be suitable for investors with:

• High risk tolerance
• A long-term investment horizon
• Seeking a potential for high growth through actively managed equity investments

Fundamental rating Based on AI: 7.8

LEEK receives an AI-based fundamental rating of 7.8 out of 10. This score reflects its strong performance and experienced management, but considers its small size and market share.

Strengths:

• Outperformance in its category
• Active and quantitative investment approach
• Low expense ratios

Weaknesses:

• Small fund size
• Low liquidity

Resources

• Market Grader website: https://marketgrader.com/
• ETF Profile on Market Grader website: https://marketgrader.com/etfs/leek-etf-two-roads-shared-trust-leadershares-equity-skew/
• ETF Profile on Yahoo Finance: https://finance.yahoo.com/quote/LEEK/

##Disclaimer

This analysis should not be taken as financial advice. It is essential to conduct thorough due diligence before making investment decisions.