Guinness Atkinson Funds - SmartETFs Sustainable Energy II ETF (SULR)

Overview

The Guinness Atkinson Funds - SmartETFs Sustainable Energy II ETF (ACES) seeks to track the performance of companies involved in sustainable energy sources and related technologies, focusing on companies primarily involved with renewable energy production, energy efficiency, and energy storage.

Reputation and Reliability

SmartETFs, in collaboration with Guinness Atkinson Asset Management, is a relatively newer entrant in the ETF market, focusing on thematic investing.

Management Expertise

Guinness Atkinson Asset Management brings experience in managing specialized investment strategies, though their ETF track record is shorter than some larger issuers.

Goal

To provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Indxx Renewable Energy Equipment Index.

Investment Approach and Strategy

Strategy: ACES aims to track the Indxx Renewable Energy Equipment Index, providing exposure to companies involved in the renewable energy sector.

Composition The ETF holds stocks of companies engaged in the production, provision, or distribution of renewable energy, and related equipment.

Market Share: ACES' market share is dependent on overall market demand for sustainable energy ETFs, and it is one of many options, making the market share smaller.

Total Net Assets (AUM): 263000000

Key Competitors

• ICLN
• TAN
• QCLN

Competitive Landscape

The sustainable energy ETF market is competitive, with several established players. ACES competes by offering a relatively focused approach to sustainable energy. Advantages may include a specific index selection, while disadvantages include smaller AUM compared to larger competitors, potentially leading to lower liquidity and visibility.

Historical Performance: Historical performance data should be sourced from official fund fact sheets and financial data providers. Numerical performance data will vary based on the time period observed.

Benchmark Comparison: Benchmark comparison should be based on official fund documents comparing returns vs. the Indxx Renewable Energy Equipment Index.

Expense Ratio: 0.58

Average Trading Volume

The average trading volume reflects the liquidity of the ETF and can be sourced from financial data providers.

Bid-Ask Spread

Bid-ask spread is the difference between the highest price a buyer will pay and the lowest price a seller will accept, indicating trading cost and liquidity.

Market Environment Factors

Economic indicators, government policies supporting renewable energy, technological advancements in the sector, and overall market sentiment towards sustainable investments significantly influence ACES.

Growth Trajectory

ACES' growth trajectory is tied to the broader adoption of renewable energy, which is being driven by environmental concerns and supportive government policies; changes in investment strategy are periodically reviewed.

Competitive Edge

ACES' competitive edge lies in its focused approach to sustainable energy, specifically targeting companies involved in renewable energy equipment and production. This narrow focus can appeal to investors seeking targeted exposure to this sub-sector. The fund's selection process and index tracking methodology contribute to its differentiation. However, this narrow focus can also be a disadvantage if other areas of clean energy perform better.

Volatility

Assessments of ACES' volatility should be based on its historical price fluctuations, beta, and other risk metrics.

Market Risk

Specific risks include regulatory changes impacting the renewable energy sector, technological obsolescence, and competition from traditional energy sources.

Ideal Investor Profile

The ideal investor is someone who believes in the long-term growth of sustainable energy and is willing to accept the risks associated with a concentrated sector investment.

Market Risk

ACES is suitable for long-term investors who are looking for growth in the renewable energy sector, not for risk averse investors due to potential volatility.

Guinness Atkinson Funds - SmartETFs Sustainable Energy II ETF (ACES) offers targeted exposure to companies involved in the renewable energy sector. The fund's performance is heavily influenced by the adoption rate and technological advancements in renewable energy. ACES faces competition from other clean energy ETFs and is sensitive to regulatory changes impacting the industry. It's best suited for investors with a long-term horizon and a belief in sustainable energy's growth potential, who are willing to stomach potential volatility.

• ICLN
• TAN
• QCLN
• FAN
• PBW

Data Sources:

• SmartETFs official website
• Indxx website
• Financial data providers (e.g., Bloomberg, Yahoo Finance)
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be based on your own research and consultation with a financial advisor.