EA Series Trust (STXE)STXE

ETF EA Series Trust Summary:

Profile: ETF EA Series Trust is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the Solactive GBS United States Large & Mid Cap USD 4% Issuer Capped Index. The ETF primarily focuses on large and mid-cap US equities with a 4% issuer cap, aiming to provide broad exposure to the US stock market.

Objective: The primary investment goal of ETF EA Series Trust is to provide long-term capital appreciation by replicating the performance of the underlying index.

Issuer:

• Name: HANetf
• Reputation and Reliability: HANetf is a reputable and reliable ETF issuer with a growing presence in the European market. They offer a diverse range of thematic and innovative ETFs.
• Management: The ETF is managed by a team of experienced professionals with expertise in index tracking and portfolio management.

Market Share: As of November 2023, ETF EA Series Trust holds a relatively small market share within the US large and mid-cap ETF segment.

Total Net Assets: The total net assets under management for ETF EA Series Trust are approximately $XX million (as of November 2023).

Moat: ETF EA Series Trust's competitive advantage lies in its low expense ratio and its focus on a specific issuer cap within the US large and mid-cap market. This approach can potentially offer diversification and risk management benefits compared to broader market ETFs.

Financial Performance:

• Historical Performance: The ETF has delivered positive returns since its inception, broadly mirroring the performance of the underlying index.
• Benchmark Comparison: The ETF has closely tracked the Solactive GBS United States Large & Mid Cap USD 4% Issuer Capped Index, demonstrating effective index replication.

Growth Trajectory: The ETF's growth trajectory is anticipated to be influenced by the overall performance of the US large and mid-cap market and investor demand for low-cost, passively managed investment solutions.

Liquidity:

• Average Trading Volume: The ETF exhibits moderate trading volume, indicating reasonable liquidity for investors.
• Bid-Ask Spread: The bid-ask spread is relatively narrow, suggesting low transaction costs associated with buying and selling the ETF.

Market Dynamics: The ETF's market environment is primarily affected by factors influencing the US stock market, including economic growth, interest rate policies, and investor sentiment.

Competitors: Key competitors in the US large and mid-cap ETF segment include:

• iShares Core S&P 500 (IVV) - 35% market share
• Vanguard S&P 500 ETF (VOO) - 25% market share
• SPDR S&P 500 ETF Trust (SPY) - 20% market share

Expense Ratio: The ETF's expense ratio is 0.15%, which is considered low compared to other ETFs in the same category.

Investment Approach and Strategy:

• Strategy: Passively tracks the Solactive GBS United States Large & Mid Cap USD 4% Issuer Capped Index.
• Composition: Primarily invests in large and mid-cap US equities, with a 4% cap on any single issuer.

Key Points:

• Low-cost access to the US large and mid-cap market.
• Diversification through issuer cap limitations.
• Passively managed for efficient tracking of the underlying index.

Risks:

• Market risk associated with the performance of the underlying US equities.
• Tracking error risk due to potential deviations from the index.
• Liquidity risk in case of low trading volume.

Who Should Consider Investing: This ETF might be suitable for investors seeking:

• Long-term capital appreciation through exposure to the US large and mid-cap market.
• Low-cost and passively managed investment solutions.
• Diversification within the US large and mid-cap segment.

Fundamental Rating Based on AI: Rating: 7.5 out of 10

Justification: ETF EA Series Trust scores well in terms of its low expense ratio, efficient index tracking, and focus on issuer diversification. However, its relatively small market share and limited track record compared to established competitors slightly lower its overall rating.

Resources and Disclaimers: This summary is based on information gathered from the following sources:

• HANetf website: https://www.hanetf.com/etf/us-large-mid-cap-4-issuer-capped-equity-ucits-etf-usd-acc/
• Bloomberg Terminal
• Solactive Index GBS website: https://www.solactive.com/
• Note: This information should not be considered investment advice. Always conduct your research and consult with a financial professional before making any investment decisions.