Touchstone ETF Trust (TSEC)

ETF Touchstone ETF Trust Overview

Profile:

ETF Touchstone ETF Trust is an actively managed exchange-traded fund (ETF) seeking to provide uncorrelated and absolute returns across a full market cycle. It invests in a wide range of assets, including equities, fixed income, currencies, and commodities, using a combination of quantitative and fundamental analysis. The ETF aims to achieve its goals through active management and by taking both long and short positions in various asset classes.

Objective:

The primary investment goal of ETF Touchstone ETF Trust is to generate absolute returns regardless of market conditions. The ETF aims to achieve this by identifying mispriced assets and exploiting market inefficiencies.

Issuer:

The ETF is issued by Touchstone Investments, a privately-held investment management firm founded in 2019.

• Reputation and Reliability: Touchstone Investments is a relatively new company with a limited track record. However, they have attracted experienced investment professionals from established financial institutions.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative and fundamental analysis.

Market Share:

ETF Touchstone ETF Trust is a relatively small ETF with a market share of less than 1% in its sector.

Total Net Assets:

As of October 26, 2023, the ETF has total net assets of approximately $75 million.

Moat:

The ETF's competitive advantages include:

• Active Management: The ETF is actively managed, allowing the portfolio managers to dynamically adjust the portfolio to market conditions.
• Diversification: The ETF invests across various asset classes, reducing the impact of any single asset class on its performance.
• Uncorrelated Returns: The ETF aims to generate returns that are uncorrelated to traditional market indices, providing diversification benefits to investors' portfolios.

Financial Performance:

The ETF has a limited track record, having launched in 2023. Its performance since inception has been mixed, with positive returns in some periods and negative returns in others. It is important to note that past performance is not indicative of future results.

Benchmark Comparison:

The ETF's performance has been compared to various benchmarks, including the S&P 500 and the Bloomberg Barclays US Aggregate Bond Index. The ETF has outperformed both benchmarks in some periods but has also underperformed in others.

Growth Trajectory:

Given the ETF's short track record, it is difficult to predict its future growth trajectory. However, the increasing demand for alternative investment strategies and the ETF's potential for uncorrelated returns could support its growth in the future.

Liquidity:

• Average Trading Volume: The ETF has an average trading volume of approximately 10,000 shares per day.
• Bid-Ask Spread: The ETF's bid-ask spread is typically around 0.1%.

Market Dynamics:

The ETF's market environment is influenced by several factors, including:

• Economic Indicators: The ETF's performance can be affected by economic indicators such as GDP growth, inflation, and interest rates.
• Sector Growth Prospects: The ETF's performance can also be influenced by the growth prospects of the sectors in which it invests.
• Current Market Conditions: The ETF's performance can be affected by current market conditions such as volatility and investor sentiment.

Competitors:

Key competitors of ETF Touchstone ETF Trust include:

• iShares Global Macro ETF (GOAT)
• Invesco Global Targeted Returns ETF (GZIP)
• PIMCO Flexible Advantage Fund (PAF)

Expense Ratio:

The ETF's expense ratio is 0.75%.

Investment Approach and Strategy:

• Strategy: The ETF actively manages its portfolio to identify mispriced assets and exploit market inefficiencies. It takes both long and short positions in various asset classes.
• Composition: The ETF invests in a wide range of assets, including equities, fixed income, currencies, and commodities. The specific asset allocation varies over time depending on market conditions.

Key Points:

• Actively managed ETF seeking uncorrelated and absolute returns.
• Invests across various asset classes.
• Aims to achieve its goals through active management and by taking both long and short positions.
• Relatively small ETF with a limited track record.
• Has the potential for uncorrelated returns and could provide diversification benefits to investors' portfolios.

Risks:

• Volatility: The ETF's value can fluctuate significantly due to its active management strategy and exposure to various asset classes.
• Market Risk: The ETF is exposed to the risks associated with the underlying assets in which it invests, such as equities, fixed income, and commodities.
• Management Risk: The ETF's performance is dependent on the skill of its portfolio managers.

Who Should Consider Investing:

This ETF may be suitable for investors who are:

• Seeking absolute returns regardless of market conditions.
• Comfortable with higher levels of volatility.
• Looking to diversify their portfolios with an uncorrelated asset class.

Fundamental Rating Based on AI:

7/10. The ETF has a unique strategy and a team of experienced portfolio managers. However, its short track record and relatively small size introduce some uncertainty.

Resources and Disclaimers:

• Data sources: ETF.com, Morningstar, Bloomberg
• Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.