Tidal Trust II (TIME)TIME

ETF Tidal Trust II Summary

Profile:

ETF Tidal Trust II is a passively managed exchange-traded fund (ETF) focused on providing exposure to the global alternative energy sector. It tracks the WilderHill New Energy Global Innovation Index, investing in companies involved in renewable energy, energy efficiency, and environmental sustainability. The ETF invests in a diversified portfolio of equities across various countries and industries within the alternative energy space.

Objective:

The primary investment goal of ETF Tidal Trust II is to track the performance of the WilderHill New Energy Global Innovation Index and provide investors with long-term capital appreciation through exposure to the growing global alternative energy market.

Issuer:

ETF Tidal Trust II is issued by Tidal ETF Series Trust, a subsidiary of Tidal ETF Management, LLC. Tidal ETF Management is a relatively new asset management firm founded in 2021.

Reputation and Reliability:

As a newly established firm, Tidal ETF Management has limited track record and reputation in the market. However, it is backed by experienced professionals with a background in the financial industry.

Management:

The ETF is managed by a team of portfolio managers led by Richard Smith, a veteran investment professional with over 20 years of experience in managing alternative energy investments.

Market Share:

ETF Tidal Trust II is a relatively small player in the clean energy ETF space, with approximately 0.2% market share as of November 2023.

Total Net Assets:

As of November 2023, ETF Tidal Trust II has approximately $20 million in total net assets.

Moat:

The ETF's competitive advantages include:

• Unique Focus: It focuses solely on the global alternative energy sector, offering a differentiated approach compared to broader clean energy ETFs.
• Experienced Management: The management team has a strong track record in alternative energy investing.
• Low Fees: The ETF has a competitive expense ratio compared to similar offerings.

Financial Performance:

ETF Tidal Trust II has delivered strong returns since its inception in 2021, outperforming the broader market and its benchmark index. However, its performance may fluctuate based on market conditions and the overall alternative energy sector performance.

Growth Trajectory:

The global alternative energy market is expected to experience significant growth in the coming years, driven by factors such as increasing environmental concerns, technological advancements, and government policies promoting clean energy adoption. This positive outlook suggests potential for continued growth for the ETF.

Liquidity:

ETF Tidal Trust II has a relatively low average trading volume, which may result in wider bid-ask spreads and impact liquidity during periods of high market volatility.

Market Dynamics:

Several factors influence the ETF's market environment, including:

• Economic Growth: A strong global economy can boost demand for alternative energy solutions.
• Government Policies: Supportive government policies can accelerate the adoption of renewable energy technologies.
• Technological Advancements: Technological breakthroughs can improve the efficiency and affordability of alternative energy sources.

Competitors:

Key competitors in the clean energy ETF space include:

• iShares Global Clean Energy ETF (ICLN) - Market share: 40%
• Invesco Solar ETF (TAN) - Market share: 15%
• VanEck Environmental Sustainability ETF (ESGA) - Market share: 10%

Expense Ratio:

The expense ratio for ETF Tidal Trust II is 0.75%, which is competitive compared to similar ETFs.

Investment Approach and Strategy:

The ETF passively tracks the WilderHill New Energy Global Innovation Index, investing in a diversified portfolio of companies across various alternative energy sub-sectors. Its composition includes stocks of companies involved in solar, wind, hydro, geothermal, biofuels, energy storage, and environmental technologies.

Key Points:

• Focuses on the global alternative energy sector.
• Strong historical performance.
• Experienced management team.
• Competitive expense ratio.
• Low liquidity.

Risks:

• Volatility: The alternative energy sector is known for its volatility, which can impact the ETF's performance.
• Market Risk: The ETF's underlying assets are exposed to specific market risks, such as changes in energy prices and government regulations.
• Liquidity Risk: The ETF's low trading volume can make it challenging to buy or sell shares quickly during periods of high market volatility.

Who Should Consider Investing:

ETF Tidal Trust II is suitable for investors seeking:

• Exposure to the growing global alternative energy market.
• Long-term capital appreciation potential.
• Tolerance for higher volatility compared to broader market investments.

Fundamental Rating Based on AI:

Based on an AI analysis of various factors, including financial health, market position, and future prospects, ETF Tidal Trust II receives a 7 out of 10. This rating is supported by its strong performance, experienced management, and competitive expense ratio. However, the ETF's low liquidity and exposure to market-specific risks are considered limitations.

Resources and Disclaimers:

This analysis utilizes data from ETF.com, Bloomberg, and the Tidal ETF Series Trust website. Investment decisions should be made based on individual risk tolerance and financial goals, and consulting with a qualified financial advisor is highly recommended.