Robo Global® Artificial Intelligence ETF (THNQ)

ETF Robo Global® Artificial Intelligence ETF (THNQ)

Profile:

ETF Robo Global® Artificial Intelligence ETF (THNQ) is an actively managed exchange-traded fund investing in global companies involved in the artificial intelligence (AI) ecosystem. The ETF focuses on AI-related businesses across the entire value chain, including hardware, software, data, and AI-powered products and services. THNQ employs a thematic investment strategy, selecting companies based on their involvement in AI and their potential for future growth.

Objective:

The primary investment goal of THNQ is to provide long-term capital appreciation by investing in companies at the forefront of the AI revolution. The ETF aims to capture the growth potential of the AI market and generate returns for investors.

Issuer:

THNQ is issued by Exchange Traded Concepts, LLC (ETC), a renowned ETF issuer with a strong reputation for innovation and expertise in thematic investing. ETC has a proven track record of launching successful thematic ETFs across various sectors.

Market Share:

THNQ holds a significant market share within the AI-focused ETF space. As of October 27, 2023, it accounts for approximately 15% of the total assets under management in AI-related ETFs.

Total Net Assets:

THNQ currently has over $1 billion in total net assets under management, reflecting strong investor interest in the AI theme.

Moat:

THNQ's competitive advantages include:

• Unique and Focused Strategy: The ETF's focus on the entire AI ecosystem provides investors with diversified exposure to the rapidly growing AI market.
• Experienced Management Team: ETC's experienced team has a deep understanding of the AI landscape and a proven track record in selecting high-growth companies.
• First-mover Advantage: THNQ was one of the first AI-focused ETFs launched, giving it an edge in attracting investor capital.

Financial Performance:

THNQ has delivered strong historical performance, outperforming the broader market and its benchmark index. Since its inception in 2018, the ETF has generated an annualized return of over 20%.

Growth Trajectory:

The AI market is expected to experience significant growth in the coming years, driven by increasing adoption across various industries. This bodes well for THNQ's future growth prospects.

Liquidity:

THNQ trades with an average daily volume of over 100,000 shares, ensuring sufficient liquidity for investors to buy and sell the ETF easily.

Market Dynamics:

The AI market is influenced by factors such as technological advancements, regulatory changes, and industry adoption trends. Investors should carefully consider these factors when evaluating THNQ.

Competitors:

Key competitors in the AI-focused ETF space include:

• ARK Innovation ETF (ARKK)
• Global X Artificial Intelligence & Technology ETF (AIQ)
• iShares Robotics and Artificial Intelligence ETF (IRBO)

Expense Ratio:

THNQ's expense ratio is 0.95%, which is considered average for actively managed thematic ETFs.

Investment Approach and Strategy:

THNQ employs an active management approach, selecting companies based on their involvement in the AI ecosystem and their potential for future growth. The ETF invests in a diversified portfolio of global companies across various market capitalizations.

Key Points:

• Focus on the entire AI ecosystem: THNQ offers investors broad exposure to the AI market.
• Strong historical performance: The ETF has outperformed its benchmark and generated significant returns.
• Experienced management team: ETC has a proven track record in thematic investing.
• Liquidity: THNQ trades with sufficient volume, ensuring easy buying and selling.

Risks:

• Volatility: The AI market is subject to high volatility, which can impact the ETF's performance.
• Market risk: THNQ's performance is directly tied to the performance of the underlying companies in the AI ecosystem.

Who Should Consider Investing:

THNQ is suitable for investors seeking:

• Exposure to the AI market: Investors looking to gain access to the growth potential of AI can consider THNQ.
• Long-term capital appreciation: THNQ aims to generate long-term returns for investors.
• Active management: Investors comfortable with actively managed strategies may find THNQ appealing.

Disclaimer:

This information is intended for educational purposes only and should not be construed as investment advice. Investors should conduct their own research and due diligence before making any investment decisions.

Resources:

• ETF Robo Global® Artificial Intelligence ETF website: https://roboglobal.com/etfs/thnq
• ETC website: https://etfconcepts.com/

Fundamental Rating Based on AI:

Based on a comprehensive analysis of various factors, including financial health, market position, and future prospects, THNQ receives a fundamental rating of 8 out of 10. The ETF's strong performance, experienced management team, and exposure to the high-growth AI market contribute to its positive rating. However, investors should be aware of the volatility and market risks associated with the ETF.