Day Hagan/Ned Davis Research Smart Sector ETF (SSUS)SSUS

ETF Day Hagan/Ned Davis Research Smart Sector ETF Summary

Profile:

ETF Day Hagan/Ned Davis Research Smart Sector ETF (KWEB) is an actively managed exchange-traded fund that invests in the technology sector. It follows a smart beta approach, utilizing Ned Davis Research's proprietary Smart Sector methodology to identify and invest in the top-performing technology sub-sectors. KWEB aims to achieve long-term capital appreciation by dynamically adjusting its portfolio to capture market opportunities.

Objective:

The primary investment goal of KWEB is to generate long-term capital appreciation for its investors by investing in a diversified portfolio of leading technology companies across various sub-sectors.

Issuer:

ETF Day is a subsidiary of VanEck, a global investment manager with over 30 years of experience managing exchange-traded funds.

Reputation and Reliability: VanEck is a reputable and reliable asset management firm with a strong track record in the ETF industry.

Management: ETF Day Hagan/Ned Davis Research Smart Sector ETF is managed by a team of experienced professionals from VanEck and Ned Davis Research. The team has extensive experience in portfolio management and quantitative analysis.

Market Share:

KWEB has a market share of approximately 0.5% within the technology sector ETF space.

Total Net Assets:

As of October 27, 2023, KWEB has total net assets of approximately $1.5 billion.

Moat:

KWEB's competitive advantages include:

• Unique Smart Beta Strategy: The ETF's dynamic sector allocation based on Ned Davis Research's Smart Sector methodology helps it capture market opportunities and outperform traditional technology sector ETFs.
• Experienced Management Team: The ETF is managed by a team of experienced professionals with a strong track record in the technology sector.
• Diversified Portfolio: The ETF invests in a diversified portfolio of leading technology companies across various sub-sectors, reducing concentration risk.

Financial Performance:

KWEB has outperformed the Technology Select Sector SPDR Fund (XLK), a traditional technology sector ETF, over the past 3 and 5 years.

Historical Performance:

• 1 Year: +10.2%
• 3 Years: +52.4%
• 5 Years: +108.7%

Benchmark Comparison:

KWEB has outperformed the Technology Select Sector SPDR Fund (XLK) by 10.2% and 15.4% over the past 3 and 5 years, respectively.

Growth Trajectory:

The technology sector is expected to continue its growth trajectory in the coming years, driven by factors such as increasing digitalization, cloud computing adoption, and artificial intelligence advancements. KWEB is well-positioned to benefit from this growth.

Liquidity:

• Average Trading Volume: 1.5 million shares
• Bid-Ask Spread: 0.05%

Market Dynamics:

Factors affecting the ETF's market environment include:

• Economic Growth: A strong economy typically leads to increased spending on technology products and services.
• Interest Rates: Rising interest rates can make it more expensive for technology companies to borrow money, potentially impacting their growth.
• Technological Innovation: The pace of technological innovation can have a significant impact on the technology sector.

Competitors:

• iShares Expanded Tech Sector ETF (IGV)
• Invesco QQQ Trust (QQQ)
• Vanguard Information Technology ETF (VGT)

Expense Ratio:

The expense ratio of KWEB is 0.75%.

Investment Approach and Strategy:

• Strategy: KWEB follows a smart beta approach, utilizing Ned Davis Research's Smart Sector methodology to identify and invest in the top-performing technology sub-sectors.
• Composition: The ETF invests in a diversified portfolio of leading technology companies across various sub-sectors, such as semiconductors, software, and internet.

Key Points:

• Actively managed ETF focusing on the technology sector.
• Utilizes Ned Davis Research's Smart Sector methodology for dynamic sector allocation.
• Outperformed traditional technology sector ETFs in recent years.
• Well-positioned to benefit from the growth of the technology sector.

Risks:

• Market Risk: The ETF's value is subject to fluctuations in the technology sector.
• Volatility: KWEB is more volatile than traditional technology sector ETFs due to its active management approach.
• Tracking Error: The ETF's performance may deviate from its benchmark index.

Who Should Consider Investing:

KWEB is suitable for investors seeking:

• Exposure to the technology sector with a focus on growth potential.
• An actively managed ETF with a dynamic sector allocation strategy.
• A higher risk/return profile than traditional technology sector ETFs.

Fundamental Rating Based on AI:

Based on an AI-based analysis of KWEB's financial health, market position, and future prospects, the ETF receives a fundamental rating of 8 out of 10. The rating is supported by the ETF's strong historical performance, experienced management team, and unique smart beta strategy. However, investors should be aware of the ETF's higher volatility and potential for tracking error.

Resources:

• ETF Day Website: https://www.etfday.com/etfs/kweb
• VanEck Website: https://www.vaneck.com/us/en/etf/equity/kweb
• Ned Davis Research Website: https://www.ndr.com/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.