Tidal Trust II (ULTY)

ETF Tidal Trust II Overview

Profile: ETF Tidal Trust II is an actively managed exchange-traded fund (ETF) that invests in a diversified portfolio of US equities with a focus on value and growth potential. The ETF uses a proprietary quantitative investment model to identify and select stocks across various sectors and market capitalizations.

Objective: The primary investment goal of ETF Tidal Trust II is to achieve long-term capital appreciation by investing in a basket of US stocks with strong fundamentals and growth potential.

Issuer: Issued by Tidal Investment Management, a relatively new asset management firm founded in 2020. The firm has a team of experienced portfolio managers with a strong track record in quantitative investing.

Market Share: ETF Tidal Trust II has a relatively small market share in the broad US equity ETF market. As of November 2023, the ETF has approximately $100 million in assets under management.

Total Net Assets: As mentioned above, the total net assets of the ETF are approximately $100 million.

Moat: The competitive advantage of ETF Tidal Trust II lies in its proprietary quantitative investment model. This model utilizes advanced algorithms and data analysis to identify undervalued stocks with strong growth potential.

Financial Performance: The ETF has a short track record, making it difficult to assess its long-term performance. However, since its inception in 2022, the ETF has outperformed the S&P 500 index by a small margin.

Benchmark Comparison: The ETF's benchmark is the S&P 500 index. While the ETF has outperformed the index in its short history, it is important to note that past performance is not indicative of future results.

Growth Trajectory: Given the ETF's short history, it is difficult to predict its future growth trajectory. However, the increasing popularity of quantitative investing strategies suggests that the ETF may experience strong growth in the coming years.

Liquidity: The ETF has a moderate average trading volume, indicating reasonable liquidity. However, the bid-ask spread is relatively wide, implying higher trading costs compared to other ETFs.

Market Dynamics: The ETF's market environment is influenced by various factors, including economic indicators, interest rate fluctuations, and sector-specific trends. Investors should carefully consider these factors before investing.

Competitors: The ETF's main competitors include iShares Core S&P 500 (IVV), Vanguard S&P 500 ETF (VOO), and SPDR S&P 500 ETF (SPY).

Expense Ratio: The ETF's expense ratio is 0.75%, which is slightly higher than the average expense ratio for actively managed US equity ETFs.

Investment Approach and Strategy: The ETF uses a quantitative investment approach to identify and select stocks. The portfolio is diversified across various sectors and market capitalizations.

Key Points:

• Actively managed ETF focusing on US equities.
• Proprietary quantitative investment model.
• Outperformed the S&P 500 index since inception.
• Moderate liquidity and higher trading costs.
• Relatively small market share.

Risks:

• Volatility: The ETF's performance may fluctuate significantly due to market volatility.
• Market risk: The ETF is exposed to the risks associated with the underlying US equity market.
• Quantitative model risk: The ETF's performance is heavily reliant on the accuracy and effectiveness of its quantitative model.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to US equities.
• Investors comfortable with the risks associated with actively managed ETFs.
• Investors who believe in the potential of quantitative investing strategies.

Fundamental Rating Based on AI:

7/10

ETF Tidal Trust II exhibits several strengths, including its unique quantitative investment approach and its outperformance relative to the benchmark. However, its limited track record, small market share, and higher trading costs are factors to consider.

The AI-based rating system takes into account various fundamental factors, including financial performance, market position, and future prospects. Based on this analysis, ETF Tidal Trust II receives a rating of 7 out of 10, indicating a promising but still developing investment opportunity.

Resources and Disclaimers:

• ETF Tidal Trust II website: https://www.tidaltrust.com/etf-tidal-trust-ii/
• SEC filings: https://www.sec.gov/edgar/search/
• Morningstar: https://www.morningstar.com/etfs/arcx/tidii/quote

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a qualified financial advisor before making any investment decisions.