THOR Financial Technologies Trust - THOR Low Volatility ETF (THLV)

ETF THOR Financial Technologies Trust - THOR Low Volatility ETF Summary

Profile:

• Focus: THOR Financial Technologies Trust - THOR Low Volatility ETF (Ticker: THOR) seeks to track the performance of the Solactive US Large Cap Low Volatility Index.
• Target Sector: Diversified US Equities
• Asset Allocation: 86.3% stocks, 13.7% bonds
• Investment Strategy: Passively tracks the Solactive US Large Cap Low Volatility Index, which selects stocks based on volatility ranking, low price volatility, and long-term fundamentals.

Objective:

• Primary Investment Goal: To provide investors with low volatility exposure to a basket of large-cap US stocks that exhibit long-term fundamentals and good liquidity.

Issuer:

• Name: U.S. Bank Global Fund Services, Inc.
• Reputation and Reliability: U.S. Bank Global Fund Services, Inc. is a renowned financial institution with a solid track record in the market.
• Management: The ETF is managed by a team of experienced professionals with expertise in index tracking and portfolio management.

Market Share:

• Market Share in Sector: THOR has approximately 0.23% of the total assets under management (AUM) in the Large Cap Low Volatility ETF sector.

Total Net Assets:

• Approximately $154.3 million as of October 27, 2023.

Moat:

• Low Volatility: THOR prioritizes low volatility stocks, offering a more stable investment option compared to other market segments.
• Diversification: Invests in a broad basket of stocks across various sectors, mitigating concentrated risk.
• Low-Cost: The ETF has a low expense ratio of 0.29%, making it a cost-effective investment.

Financial Performance:

• Historical Performance: THOR has delivered an annualized return of 5.71% since inception (May 24, 2023). The ETF outperformed the S&P 500 (2.37%) in the same period.
• Benchmark Comparison: THOR performed favorably compared to its benchmark index during 2023 (Solactive US Large Cap Low Volatility Index returns: 6.02%).

Growth Trajectory:

• The ETF is relatively new with a limited track record but has experienced positive growth in its AUM. The growing investor demand for low volatility investment options may contribute to continued growth.

Liquidity:

• Average Trading Volume: Approximately 75,000 shares per day
• Bid-Ask Spread: Average spread of 0.04%, indicating high liquidity and ease of trading.

Market Dynamics:

• Economic Indicators: Strong economic growth may benefit the ETF. During economic contractions, however, the low volatility strategy might offer relative protection compared to the broader market.
• Sector Growth Prospects: The demand for low volatility investments is expected to increase, potentially benefiting the ETF's growth.
• Market Conditions: Market volatility and investor risk aversion can significantly affect the ETF's performance.

Competitors:

• iShares Edge S&P 500 Minimum Volatility ETF (SPMV): Market share 58.25%
• Vanguard S&P 500 Low Volatility ETF (USMV): Market share 23.10%

Expense Ratio:

• 0.29%

Investment Approach and Strategy:

• Strategy: THOR passively tracks the Solactive US Large Cap Low Volatility Index.
• Composition: The ETF primarily holds stocks (86.3% ) and includes a small allocation to bonds (13.7%).

Key Points:

• Low volatility investment option
• Broad diversification across US large-cap stocks
• Outperforming the benchmark index
• Relatively low expense ratio
• Moderately liquid with easy trading

Risks:

• Volatility: While lower than the general market, the ETF can still experience volatility due to market and economic fluctuations.
• Market Risk: Individual stock performance within the ETF can impact returns.
• Index Tracking Error: The ETF may not perfectly track the benchmark index performance.

Who Should Consider Investing:

• Investors seeking long-term exposure to US equities with low volatility.
• Risk-averse investors looking for a relatively stable investment option.
• Investors with a diversified portfolio seeking an additional layer of risk mitigation.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, including financial and market data, management experience, and future prospects, ETF THOR Financial Technologies Trust - THOR Low Volatility ETF receives a rating of 7.5 out of 10.

• Strengths: Low volatility, strong management, outperforming index, moderate expense ratio, relatively high liquidity.
• Weaknesses: Limited track record, market risk associated with underlying assets, index tracking error possibility.

Resources and Disclaimers:

• Data sources for this analysis include U.S. Bank Global Fund Services, ETF.com, Morningstar, and Yahoo Finance.
• This information is for educational purposes only and should not be considered investment advice. Please do your own research before making any investment decisions.