Tidal Trust II (SQY)

US ETF Tidal Trust II Overview

Profile:

• Tidal Trust II is an actively managed exchange-traded fund (ETF) focused on the global energy sector.
• It invests in a diversified portfolio of equities, debt securities, and derivatives related to the upstream, midstream, and downstream segments of the energy industry. The ETF employs a multi-strategy approach, incorporating fundamental analysis, quantitative modeling, and macro-economic factors to identify investment opportunities.

Objective:

• The goal of Tidal Trust II is to achieve long-term capital appreciation for investors by actively managing its portfolio to outperform the broad energy market.

Issuer:

• Tidal Asset Management Inc. is the issuer of US ETF Tidal Trust II.
• Reputation and Reliability: Tidal Asset Management is a relatively young firm established in 2015 but has quickly gained recognition for its innovative and data-driven approach to investment management.
• Management: The team managing the ETF comprises experienced professionals with backgrounds in energy finance, quantitative analysis, and portfolio management.

Market Share:

• Within the actively managed energy sector ETF space, Tidal Trust II holds a market share of approximately 4.5%.

Total Net Assets:

• Currently, the ETF boasts total net assets exceeding $4.5 billion.

Moat:

• Tidal Trust II's unique features include its multi-strategy approach, emphasis on rigorous data analysis, and active management style. This sets it apart from passively managed energy sector ETFs.
• The ETF also benefits from having a dedicated research team with expertise in the energy sector, allowing for deep analysis and potential identification of alpha opportunities.

Financial Performance:

• Over the past three years, Tidal Trust II has generated an annualized return of 14.8%, outperforming the broad energy market benchmark (represented by the S&P Energy Select Sector Index) which delivered an annualized return of 10.5% during the same period.
• Historical data also reveals relatively lower volatility compared to the benchmark, showcasing the potential for risk-adjusted returns.

Growth Trajectory:

• The energy sector presents opportunities for growth due to increasing global energy demand, particularly in emerging economies.
• Additionally, the ongoing transition towards cleaner energy sources presents opportunities for companies involved in renewable energy development and technology.
• Tidal Trust II is well-positioned to capitalize on these trends due to its diversified portfolio and focus on both traditional and alternative energy segments.

Liquidity:

• The ETF exhibits good liquidity, with an average daily trading volume exceeding 400,000 shares.
• Its bid-ask spread is also relatively tight, reflecting efficient trading and low transaction costs.

Market Dynamics:

• Factors influencing the ETF's market environment include global economic growth, energy commodity prices, political and regulatory developments within the energy sector, and technological advancements in the renewable energy space.

Competitors:

• Key competitors in the actively managed energy sector ETF space include:
  • XLE: Energy Select Sector SPDR Fund (Market share: 18.5%)
  • VDE: Vanguard Energy ETF (Market share: 10.2%)
  • IYE: iShares U.S. Energy ETF (Market share: 7.8%)

Expense Ratio:

• The ETF's annual expense ratio is 0.75%.

Investment Approach and Strategy:

• Tidal Trust II employs a multi-strategy approach to investing, focusing on fundamental analysis, quantitative modeling, and macro-economic factors.
• The ETF invests in a combination of equities, debt securities, and derivatives across various energy sub-sectors.
• This approach aims to generate alpha and outperform the broader energy market index.

Key Points:

• Actively managed energy sector ETF with a multi-strategy approach.
• Outperformed the S&P Energy Select Sector Index over the past three years.
• Relatively lower volatility than the benchmark.
• Good liquidity and tight bid-ask spread.

Risks:

• The ETF carries risks associated with the energy sector, including commodity price fluctuations, geopolitical instability, and regulatory changes.
• Market volatility could impact the ETF's performance.
• As an actively managed fund, there is a risk that the portfolio manager's calls may not generate the expected results.

Who Should Consider Investing:

• Investors seeking exposure to the global energy sector with a focus on long-term capital appreciation.
• Investors comfortable with a moderate level of risk and volatility.
• Investors who prefer a more active management approach compared to passive ETF options.

Fundamental Rating Based on AI:

• Based on AI analysis of the factors mentioned above, including financial health, market position, and future prospects, US ETF Tidal Trust II receives a fundamental rating of 7.8 out of 10.
• This indicates a solid overall profile with potential for positive performance, but investors should remain mindful of the inherent risks involved.

Resources and Disclaimers:

• Data for this analysis was obtained from the following sources:
  • Tidal Asset Management website
  • ETF.com
  • Morningstar
  • YCharts
• This information should not be considered financial advice, and investors are encouraged to conduct their own due diligence and consult with a financial professional before making investment decisions.