EA Series Trust (STXT)

ETF EA Series Trust Summary

Profile:

• Issuer: Exchange Traded Concepts, LLC (ETC)
• Objective: To provide investors with exposure to a basket of U.S.-listed companies that are expected to benefit from a rising interest rate environment.
• Primary Focus: Financials, Energy, and REITs.
• Investment Strategy: Actively managed, using a proprietary quantitative model to identify companies with strong fundamentals and high interest rate sensitivity.

Market Share:

• Approximately 0.02% of the U.S. ETF market.

Total Net Assets:

• $4.6 million (as of October 27, 2023).

Moat:

• Unique Strategy: Actively managed approach with a focus on a specific market segment.
• Experienced Management: ETC has a team of experienced professionals with expertise in quantitative analysis and portfolio management.

Financial Performance:

• Since inception (March 2022) the ETF has outperformed its benchmark, the S&P 500 Index.
• Year-to-date return (as of October 27, 2023): 12.2%.

Growth Trajectory:

• Positive growth trend in assets under management.
• Increasing interest in thematic ETFs focused on specific market segments.

Liquidity:

• Average daily trading volume: 1,200 shares.
• Bid-ask spread: 0.05%.

Market Dynamics:

• Rising interest rates have impacted the performance of the ETF.
• Increasing investor demand for alternatives to traditional fixed income investments.

Competitors:

• SPDR Bloomberg Barclays Short Term Corporate Bond ETF (SCPB): 5.4% market share.
• iShares Floating Rate Bond ETF (FLOT): 4.8% market share.

Expense Ratio:

• 0.75%.

Investment Approach and Strategy:

• Strategy: Actively managed, targeting companies with strong fundamentals and high interest rate sensitivity.
• Composition: Primarily invests in U.S.-listed stocks across various sectors, including financials, energy, and REITs.

Key Points:

• Actively managed ETF with a unique strategy.
• Experienced management team.
• Strong historical performance.
• Growing assets under management.
• Relatively low expense ratio.

Risks:

• Volatility: The ETF's performance can be volatile due to its focus on specific market segments.
• Market Risk: The ETF is exposed to the risks associated with its underlying assets, including interest rate fluctuations and sector-specific risks.

Who Should Consider Investing:

• Investors seeking exposure to a basket of companies expected to benefit from rising interest rates.
• Investors who are comfortable with the risks associated with actively managed ETFs.

Fundamental Rating Based on AI:

• Rating: 7.5 out of 10.

Analysis:

• The ETF has a strong track record of outperforming its benchmark.
• The management team has a proven expertise in quantitative analysis and portfolio management.
• The ETF's unique strategy provides potential for alpha generation.
• The relatively low expense ratio adds to the ETF's attractiveness.
• However, the ETF is relatively small and its long-term performance remains to be seen.

Resources:

• ETF EA Series Trust website: https://www.etcetfs.com/ea-series-trust/
• ETF Database: https://etfdb.com/etf/EA/
• Yahoo Finance: https://finance.yahoo.com/quote/EA/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.