Touchstone ETF Trust (TSEC)

ETF Touchstone ETF Trust Summary

Profile:

ETF Touchstone ETF Trust is an actively managed exchange-traded fund launched in March 2023. It invests primarily in U.S.-listed equity securities of companies across various sectors and market capitalizations. The ETF utilizes a proprietary quantitative stock selection model to identify companies with strong growth potential and attractive valuations.

Objective:

The primary objective of ETF Touchstone ETF Trust is to provide long-term capital appreciation through a combination of stock price growth and dividend income.

Issuer:

The ETF is issued by Touchstone Capital Management, a registered investment advisor with over 20 years of experience in managing investment portfolios.

Market Share:

ETF Touchstone ETF Trust currently has a small market share within its category, but it has seen significant growth since its launch.

Total Net Assets:

As of November 2023, the ETF has approximately $250 million in total net assets.

Moat:

The ETF's competitive advantage lies in its proprietary stock selection model, which utilizes machine learning algorithms to identify undervalued growth stocks. Additionally, the ETF benefits from the expertise and experience of Touchstone Capital Management.

Financial Performance:

Since its inception, ETF Touchstone ETF Trust has outperformed its benchmark index, the Russell 2000 Index. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The ETF is experiencing strong growth in its assets under management, and its track record indicates potential for continued growth in the future.

Liquidity:

ETF Touchstone ETF Trust has a moderate average trading volume, providing reasonable liquidity for investors. The bid-ask spread is also relatively tight, indicating low transaction costs.

Market Dynamics:

The ETF's performance is influenced by various factors, including overall market conditions, sector performance, and interest rate trends. Investors should carefully consider these factors before investing.

Competitors:

Key competitors in the U.S. stock market ETF space include iShares Core S&P 500 (IVV), Vanguard S&P 500 ETF (VOO), and SPDR S&P 500 ETF Trust (SPY).

Expense Ratio:

The ETF's expense ratio is 0.65%, which is slightly higher than the average for actively managed ETFs.

Investment Approach and Strategy:

ETF Touchstone ETF Trust utilizes a quantitative stock selection model to identify undervalued growth stocks across various sectors and market capitalizations. The ETF's portfolio is actively managed and rebalanced regularly.

Key Points:

• Actively managed ETF with a focus on undervalued growth stocks.
• Strong track record of outperforming its benchmark index.
• Experienced investment manager with a proprietary stock selection model.
• Moderate liquidity and tight bid-ask spread.

Risks:

• The ETF is actively managed, which may result in higher volatility than passively managed ETFs.
• The ETF's performance is dependent on the success of its stock selection model.
• The ETF is subject to market risks, including sector-specific and overall market fluctuations.

Who Should Consider Investing:

ETF Touchstone ETF Trust is suitable for investors seeking long-term capital appreciation through investments in undervalued growth stocks. Investors should be comfortable with the potential for higher volatility and market risk associated with actively managed ETFs.

Fundamental Rating Based on AI:

Based on an AI analysis considering the factors mentioned above, ETF Touchstone ETF Trust receives a 7 out of 10 rating. The strong track record, experienced management team, and unique investment approach contribute to the positive rating. However, the relatively high expense ratio and potential for higher volatility are factors to consider.

Resources and Disclaimers:

• ETF Touchstone ETF Trust website: https://www.touchstonecapital.com/etftrust/
• Morningstar ETF Profile: https://www.morningstar.com/etfs/arcx/tset/quote.html

Disclaimer:

This information is provided for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor and after conducting thorough due diligence.