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

Overview

The Day Hagan/Ned Davis Research Smart Sector ETF (DSS) is an actively managed ETF that seeks long-term capital appreciation by strategically allocating assets among different sectors of the U.S. equity market based on proprietary research and a rules-based methodology.

Reputation and Reliability

Day Hagan Asset Management and Ned Davis Research are established firms with experience in asset management and investment research, respectively. Their collaboration aims to provide sophisticated sector allocation strategies.

Management Expertise

The ETF is managed by professionals with expertise in both quantitative analysis and macroeconomic forecasting, combining top-down and bottom-up approaches.

Goal

The primary investment goal is to achieve long-term capital appreciation by dynamically allocating assets among U.S. equity sectors.

Investment Approach and Strategy

Strategy: DSS employs an active management strategy that relies on proprietary research from Ned Davis Research to identify sectors with the strongest potential for outperformance.

Composition The ETF holds a diversified portfolio of stocks across various U.S. equity sectors, with weightings determined by the smart sector allocation methodology.

Market Share: Data unavailable. DSS is a relatively small player in the sector ETF market.

Total Net Assets (AUM): 26142673

Key Competitors

• SPDR Sector ETFs (XLK, XLV, XLI, etc.)
• Invesco Sector ETFs (RYT, RGI, PBE, etc.)
• Fidelity Sector ETFs (FNCL, FTEC, FHLC, etc.)

Competitive Landscape

The sector ETF market is highly competitive, dominated by larger, more established ETF providers like SPDR, Invesco, and Fidelity. DSS faces the challenge of attracting assets in a crowded field. DSS aims to differentiate itself through its smart sector allocation methodology and the integration of Ned Davis Research's research, but it requires strong performance to stand out.

Historical Performance: Historical performance data should be obtained from official ETF fund fact sheets and financial websites.

Benchmark Comparison: The benchmark would ideally be a broad U.S. equity index or a custom benchmark reflecting the sector allocation strategy.

Expense Ratio: 0.75

Average Trading Volume

Average trading volume for DSS is relatively low, reflecting its smaller size and potentially wider bid-ask spreads.

Bid-Ask Spread

Due to the lower trading volume, the bid-ask spread may be wider compared to more liquid sector ETFs.

Market Environment Factors

Economic indicators, interest rate movements, sector-specific growth prospects, and overall market sentiment significantly influence DSS's performance.

Growth Trajectory

The growth trajectory of DSS depends on its ability to attract assets through strong performance and effective marketing of its smart sector allocation strategy. Changes in strategy or holdings are disclosed in fund prospectuses.

Competitive Edge

DSS's competitive advantage lies in its unique investment strategy that combines the expertise of Day Hagan Asset Management and Ned Davis Research. This collaboration integrates quantitative analysis with macroeconomic forecasting to dynamically allocate assets among sectors. The active sector rotation strategy distinguishes it from passive sector ETFs, potentially offering outperformance. However, its smaller size and relatively higher expense ratio pose challenges in attracting investors.

Volatility

DSS's volatility will depend on the volatility of the underlying sectors it invests in and the effectiveness of its sector rotation strategy.

Market Risk

DSS is exposed to market risk associated with U.S. equities, including economic downturns, sector-specific risks, and changes in investor sentiment.

Ideal Investor Profile

The ideal investor is someone who is seeking long-term capital appreciation, believes in active sector rotation strategies, and is comfortable with a higher expense ratio.

Market Risk

DSS may be suitable for long-term investors looking for actively managed sector exposure, but it may not be ideal for active traders due to potentially lower liquidity and wider bid-ask spreads.

The Day Hagan/Ned Davis Research Smart Sector ETF (DSS) is an actively managed ETF aiming for long-term capital appreciation through strategic sector allocation. It leverages the expertise of Day Hagan and Ned Davis Research, which integrates quantitative analysis with macroeconomic forecasting, which presents the potential for outperformance in the long run. DSS's success depends on its ability to consistently outperform its benchmark, attracting assets and competing with larger sector ETFs. Its actively managed approach and relatively higher expense ratio distinguish it from passive sector ETFs. The success depends on consistent outperformance and marketing to attract investors.

Data Sources:

• ETF.com
• Morningstar
• Company Fact Sheets
• Bloomberg
• Ycharts

Disclaimers:

The information provided is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Market data is subject to change.