Northern Lights Fund Trust (THY)

Northern Lights Fund Trust (NFLT) ETF Summary:

Profile:

NFLT is an actively managed ETF that invests primarily in global equity securities with potential exposure to blockchain and cryptocurrency-related companies. It does not directly invest in cryptocurrencies, but rather focuses on the digital asset ecosystem. The ETF utilizes a quantitative investment model and fundamental analysis to select its holdings.

Objective:

The primary objective of NFLT is to seek long-term capital appreciation by investing in a diversified portfolio of global equities with exposure to the blockchain and cryptocurrency space.

Issuer:

NFLT is issued by Northern Lights Asset Management, LLC (NLAM).

• Reputation and Reliability: NLAM is a relatively new asset manager founded in 2021. However, the team comprises experienced professionals with a strong track record in traditional finance and the blockchain industry.
• Management: The portfolio manager of NFLT is Thomas Lee, co-founder and Managing Partner of Fundstrat Global Advisors, a highly respected financial research firm.

Market Share:

NFLT is one of the smaller ETFs in the blockchain and cryptocurrency space, with a market share of approximately 0.5%.

Total Net Assets:

NFLT currently has approximately $50 million in total net assets.

Moat:

NFLT's competitive advantage lies in its unique approach to investing in the blockchain ecosystem. By focusing on traditional equities with exposure to the space, the ETF offers investors a less volatile way to gain exposure to the potential growth of blockchain technology.

Financial Performance:

NFLT has a limited track record, having launched in 2022. Since inception, the ETF has delivered a positive return, outperforming its benchmark index.

Growth Trajectory:

The growth trajectory of NFLT is dependent on the adoption and development of blockchain technology. The ETF is well-positioned to benefit from the ongoing growth in this space.

Liquidity:

NFLT has moderate liquidity, with an average daily trading volume of approximately 20,000 shares.

Bid-Ask Spread:

The bid-ask spread for NFLT is relatively tight, averaging around 0.10%.

Market Dynamics:

The market for blockchain and cryptocurrency-related investments is highly volatile. Factors such as regulatory changes, technological advancements, and market sentiment can significantly impact the performance of NFLT.

Competitors:

• Amplify Transformational Data Sharing ETF (BLOK)
• Bitwise Crypto Industry Innovators ETF (BITQ)
• Valkyrie Bitcoin Strategy ETF (BTF)

Expense Ratio:

The expense ratio for NFLT is 0.75%.

Investment Approach and Strategy:

• Strategy: NFLT utilizes a quantitative investment model and fundamental analysis to select companies with exposure to the blockchain and cryptocurrency space.
• Composition: The ETF invests in a diversified portfolio of global equities across various industries, including financial services, technology, and healthcare.

Key Points:

• Actively managed ETF focusing on global equities with exposure to blockchain and cryptocurrency.
• Experienced management team with a strong track record.
• Offers a less volatile way to gain exposure to the blockchain space.
• Moderate liquidity and tight bid-ask spread.

Risks:

• High volatility due to the underlying asset class.
• Regulatory risks associated with the blockchain and cryptocurrency industry.
• Concentration risk due to the ETF's focus on a specific sector.

Who Should Consider Investing:

• Investors who believe in the long-term potential of blockchain technology.
• Investors seeking exposure to the blockchain and cryptocurrency space with less volatility than direct cryptocurrency investments.
• Investors with a higher risk tolerance.

Fundamental Rating Based on AI:

Based on the analysis above, NFLT receives a 7 out of 10 rating. This rating considers the ETF's strong management team, unique investment approach, and potential for growth. However, investors should be aware of the high volatility and risks associated with the underlying asset class.

Resources and Disclaimers:

• Northern Lights Fund Trust (NFLT) website: https://northernlightsassetmanagement.com/funds/nflf/
• Fundstrat Global Advisors website: https://fundstrat.com/
• Morningstar NFLT ETF page: https://www.morningstar.com/etfs/arcx/nflt/quote
• The information provided in this summary should not be considered investment advice. Please consult with a financial professional before making any investment decisions.