Strategy Shares - Day Hagan/Ned Davis Research Smart Sector Fixed Income ETF (SSFI)

Overview

The Strategy Shares - Day Hagan/Ned Davis Research Smart Sector Fixed Income ETF (FIXD) is an actively managed fund that aims to provide income while seeking to outperform the broad fixed income market by strategically allocating across different fixed income sectors based on relative strength analysis.

Reputation and Reliability

Strategy Shares is a smaller ETF issuer known for its actively managed, tactical ETFs. They are considered reliable, but lack the scale and history of larger issuers.

Management Expertise

The ETF's investment strategy is co-managed by Day Hagan Asset Management and Ned Davis Research, both firms with established expertise in tactical asset allocation and fixed income analysis.

Goal

The ETF seeks to generate income and outperform the broad fixed income market.

Investment Approach and Strategy

Strategy: FIXD is actively managed, meaning its portfolio composition is based on the investment manager's discretion and analysis, not a static index. Relative strength and macro analysis drive sector allocations.

Composition The ETF invests primarily in U.S. fixed income securities across various sectors, including government bonds, corporate bonds, mortgage-backed securities, and high-yield bonds. The allocation is dynamic, shifting based on market conditions.

Market Share: FIXD's market share within the fixed income ETF universe is relatively small.

Total Net Assets (AUM): 22650000

Key Competitors

• iShares Core U.S. Aggregate Bond ETF (AGG)
• Vanguard Total Bond Market ETF (BND)
• SPDR Portfolio Aggregate Bond ETF (SPAB)

Competitive Landscape

The fixed income ETF market is dominated by large, passively managed funds with low expense ratios. FIXD differentiates itself through active management and sector rotation. This active approach can offer the potential for outperformance but comes with higher fees and the risk of underperformance relative to passive benchmarks. FIXD's advantage lies in its dynamic allocation strategy based on relative strength, while its disadvantage is its higher expense ratio and potential for tracking error.

Historical Performance: Historical performance data is not provided in this output. Refer to financial data vendors to gather this data.

Benchmark Comparison: Benchmark comparison data is not provided in this output. Refer to financial data vendors to gather this data.

Expense Ratio: 0.6

Average Trading Volume

The average trading volume for FIXD is relatively low, which may lead to wider bid-ask spreads.

Bid-Ask Spread

Due to the low average trading volume, the bid-ask spread may be relatively wide.

Market Environment Factors

Economic indicators such as interest rates, inflation, and economic growth influence the performance of fixed income securities. Sector growth prospects within the fixed income market and overall market sentiment also play a significant role.

Growth Trajectory

The growth trajectory of FIXD depends on its ability to generate alpha through its active management strategy. Changes in strategy and holdings are expected as part of its active management approach.

Competitive Edge

FIXD's primary competitive advantage lies in its active management and dynamic sector allocation strategy, which leverages the expertise of Day Hagan and Ned Davis Research. By employing a relative strength methodology, FIXD aims to identify and overweight sectors poised for outperformance. This tactical approach differentiates it from passively managed fixed income ETFs. However, success depends on the effectiveness of the investment team's sector selection and timing.

Volatility

Volatility data is not provided. Refer to financial data vendors to gather this data.

Market Risk

FIXD is subject to market risk, including interest rate risk (the risk that rising interest rates will decrease the value of fixed income securities), credit risk (the risk that issuers will default on their debt obligations), and sector risk (the risk that certain sectors of the fixed income market will underperform).

Ideal Investor Profile

The ideal investor for FIXD is someone seeking income and potential outperformance relative to the broad fixed income market, is comfortable with active management, and understands that higher fees come with the potential for higher returns (and higher risk of underperformance).

Market Risk

FIXD is suitable for investors looking for tactical fixed income exposure and who are comfortable with the higher expense ratio associated with active management. It may appeal to both long-term investors seeking income and active traders looking to capitalize on short-term market trends.

The Strategy Shares - Day Hagan/Ned Davis Research Smart Sector Fixed Income ETF (FIXD) offers actively managed exposure to the fixed income market through a dynamic sector allocation strategy. Managed by Day Hagan and Ned Davis Research, FIXD aims to outperform passive benchmarks by identifying and overweighting sectors with relative strength. This active approach comes with a higher expense ratio and the risk of underperformance, but it may appeal to investors seeking tactical fixed income exposure. FIXD is suitable for investors who understand and are comfortable with the risks and rewards of active management in the fixed income space. With its small market share and AUM, FIXD requires a high level of scrutiny to determine if the fund performance justifies the higher costs of management.

Data Sources:

• ETF.com
• Morningstar
• Strategy Shares Website

Disclaimers:

This data is for informational purposes only and should not be considered investment advice. Consult with a financial advisor before making any investment decisions. Performance data is not guaranteed and past performance is not indicative of future results.