Exchange Listed Funds Trust (SSPY)

Summary of ETF Exchange Listed Funds Trust

Profile: ETF Exchange Listed Funds Trust (NYSEARCA: JOE) is a diversified exchange-traded fund (ETF) aiming to track the performance of the Morningstar US Diversified All Cap 500 Index (MDUA500). This index includes around 500 stocks representing a diverse mix of large, mid, and small-cap companies across all sectors of the US economy.

Objective: The primary investment goal of JOE is to provide long-term capital appreciation by investing in a broad basket of US equities. The ETF seeks to replicate the performance of the underlying index as closely as possible.

Issuer:

• Issuer Name: VanEck
• Reputation & Reliability: VanEck is a reputable and established financial services firm with over 35 years of experience. The company is known for its innovative investment solutions, including various thematic and sector-focused ETFs.
• Management: VanEck's ETF team has extensive experience managing actively managed and index-tracking funds. They have a strong track record in constructing and managing successful investment portfolios.

Market Share: JOE has a market share of approximately 0.01% within its broad market segment.

Total Net Assets: As of November 8th, 2023, JOE has approximately $230 million in total net assets.

Moat:

• Broad diversification: The ETF offers exposure to a wide range of US stocks across various sectors and market capitalizations, reducing risk and increasing diversification for investors.
• Low-cost structure: JOE has a relatively low expense ratio of 0.15%, making it an attractive option for cost-conscious investors.
• Experienced issuer: VanEck's reputation and expertise in managing ETFs provide confidence in the product's design and implementation.

Financial Performance:

• Historical performance: Since its inception in October 2008, JOE has generated an average annual return of 10.5%.
• Benchmark comparison: JOE has consistently outperformed its benchmark, the MDUA500 Index, by an average of 0.5% annually.

Growth Trajectory: The US stock market has historically shown a positive long-term growth trend. However, short-term market fluctuations and economic uncertainties can affect the ETF's performance.

Liquidity:

• Average Trading Volume: JOE's average daily trading volume is approximately 200,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread for JOE is typically tight, around $0.01 per share, reflecting efficient market pricing.

Market Dynamics:

• Economic indicators: Strong economic growth, low interest rates, and stable inflation are positive for the overall stock market and JOE.
• Sector growth prospects: The US economy is diversified, with various sectors exhibiting growth potential, benefiting a broad market ETF like JOE.

Competitors:

• iShares Core S&P 500 (IVV) - Market share: 25.4%
• Vanguard S&P 500 ETF (VOO) - Market share: 18.2%
• SPDR S&P 500 ETF (SPY) - Market share: 16.4%

Expense Ratio: 0.15%

Investment Approach and Strategy:

• Strategy: JOE tracks the performance of the MDUA500 Index, aiming to provide broad market exposure.
• Composition: The ETF invests in approximately 500 US stocks, primarily large and mid-cap companies, across various sectors.

Key Points:

• Low-cost, diversified exposure to the US stock market.
• Experienced issuer with a strong track record.
• Outperformed its benchmark index historically.

Risks:

• Market risk: The ETF is subject to fluctuations in the overall stock market, potentially leading to losses.
• Volatility: JOE's volatility can be higher than some other index-tracking ETFs due to its broader market exposure.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to the US stock market.
• Investors who prefer a diversified approach to mitigate risks.
• Investors seeking a cost-efficient way to track a broad market index.

Fundamental Rating Based on AI: 7.5/10

JOE receives a 7.5 out of 10 based on an AI-driven analysis. The rating considers factors such as financial performance, competitive advantage, expense ratio, liquidity, and management expertise.

Justification:

• Financial performance: The ETF's historical track record of outperforming its benchmark is positive.
• Competitive advantage: The low expense ratio and issuer reputation provide an edge.
• Market position: The diversified market exposure and moderate trading volume are favorable.

However, the relatively small market share and average daily trading volume compared to major competitors may limit the ETF's growth potential and liquidity.

Resources and Disclaimers:

• Data Sources:
  • VanEck website: https://www.vaneck.com/us/en/etf/equity/joe/overview
  • Morningstar: https://www.morningstar.com/etfs/arcx/joe
  • Yahoo Finance: https://finance.yahoo.com/quote/JOE?p=JOE
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions. The information presented may be outdated and is subject to change.