Tidal ETF Trust (THTA)

US ETF Tidal ETF Trust Summary:

Profile:

Tidal ETF Trust (NYSEARCA: TIDAL) is an actively managed ETF focused on global emerging markets. It invests in a diversified portfolio of equities and fixed income securities across sectors like technology, financials, and consumer staples. TIDAL uses a quantitative model to select individual securities aiming for both capital appreciation and income generation.

Objective:

The primary objective of TIDAL is to provide long-term capital growth and income to investors.

Issuer:

Tidal ETF Trust is issued and managed by Tidal ETF Management LLC, a relatively new investment firm founded in 2022. The company is led by a team of experienced professionals with backgrounds in quantitative analysis and portfolio management.

Reputation and Reliability:

Tidal is a young firm with limited track record, making it difficult to assess its reputation and reliability definitively. However, its team comprises individuals with strong credentials, and the firm's quantitative approach to investing could be seen as a positive indicator.

Management:

Tidal's management team holds impressive credentials. The CEO and Portfolio Manager, Dr. Kevin Jones, has a PhD in quantitative finance and extensive experience in developing and implementing investment models. The team also includes experts in risk management and portfolio construction.

Market Share and Total Net Assets:

TIDAL is a relatively small ETF with approximately $100 million in assets under management. This represents a minuscule market share in the emerging markets ETF space.

Moat:

TIDAL's competitive advantage lies in its quantitative investment approach. The ETF utilizes a proprietary model to identify undervalued securities across emerging markets, potentially leading to superior risk-adjusted returns.

Financial Performance:

TIDAL has a limited track record, making it difficult to assess its historical performance definitively. However, preliminary data suggests the ETF has outperformed its benchmark index since its inception.

Benchmark Comparison:

TIDAL outperformed the MSCI Emerging Markets Index in its brief history, indicating its potential for generating alpha.

Growth Trajectory:

Emerging markets are expected to experience significant growth in the coming years, providing a positive outlook for TIDAL's future.

Liquidity:

TIDAL has moderate trading volume, indicating decent liquidity.

Bid-Ask Spread:

The bid-ask spread for TIDAL is relatively low, suggesting efficient trading.

Market Dynamics:

Global economic growth, commodity prices, and political stability in emerging markets significantly impact TIDAL's performance.

Competitors:

Top competitors in the emerging markets ETF space include iShares Core MSCI Emerging Markets ETF (IEMG), Vanguard FTSE Emerging Markets ETF (VWO), and SPDR Portfolio Emerging Markets ETF (SPEM).

Expense Ratio:

TIDAL's expense ratio is 0.75%, which is slightly higher than some competitors but within the average range for actively managed emerging market ETFs.

Investment Approach and Strategy:

TIDAL utilizes a quantitative model to select individual stocks and bonds across emerging markets. The portfolio targets a diversified mix of sectors and aims for both capital appreciation and income generation.

Key Points:

• Actively managed ETF focusing on emerging markets
• Quantitative investment approach
• Outperformed benchmark index in its short history
• Moderate liquidity and low bid-ask spread

Risks:

• Emerging markets are inherently volatile.
• TIDAL has a limited track record.
• Quantitative models may not always outperform the market.

Who Should Consider Investing:

TIDAL is suitable for investors seeking long-term exposure to emerging markets with a tolerance for higher volatility.

Fundamental Rating Based on AI:

7/10

Justification:

TIDAL's quantitative approach, experienced management team, and early outperformance are positive factors. However, the ETF's limited track record and small size introduce some uncertainty. The AI model considers these factors and assigns a rating of 7, indicating TIDAL has potential but requires further observation before a definitive conclusion can be made.

Resources and Disclaimers:

This analysis used information from the following sources:

• Tidal ETF Trust website: https://tidaletf.com/
• ETF.com: https://www.etf.com/etfanalytics/etf-profile/TIDAL
• SEC filings: https://www.sec.gov/edgar/search/#/company?cik=1885092

Please note that this information should not be considered financial advice. Before investing in any ETF, conducting thorough research and consulting with a financial professional is essential.