Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (UTRN)UTRN

Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (NYSEARCA: BRT)

Profile

Target Sector: Large-cap US Equities

Asset Allocation: Primarily invested in US large-cap stocks (over $10 billion market capitalization)

Investment Strategy: Employs a quantitative strategy to identify and invest in large-cap stocks exhibiting short-term reversal patterns based on price and volume trends. This strategy aims to profit from short-term price movements by buying stocks expected to rebound after a recent decline and selling those anticipated to retrace after a surge.

Objective

The primary investment goal of BRT is to generate positive absolute returns through short-term trading in large-cap stocks, regardless of the overall market direction.

Issuer

Vesper Holdings:

• Established in 2016, Vesper focuses on actively managed ETFs using quantitative investment strategies.
• Manages over $1.4 billion in assets across its 5 actively managed ETFs.
• Headquartered in New York City with experienced investment professionals leading the team.

Market Share

BRT holds a relatively small market share within the large-cap US equity ETF space, accounting for approximately 0.03% as of August 15, 2023.

Total Net Assets

BRT has total net assets of roughly $59 million as of August 15, 2023.

Moat

Competitive Advantages:

• Unique Strategy: BRT's short-term reversal strategy differentiates it from traditional buy-and-hold large-cap ETFs.
• Experienced Management: The team at Vesper comprises seasoned investment professionals with expertise in quantitative strategies.
• Active Management: Unlike passive index-tracking ETFs, BRT's active management approach potentially allows for quicker adaptation to market changes.

Financial Performance

Historical Performance:

• Since inception (August 2023), BRT has yielded a return of roughly 3.8%.
• In the past year, BRT has outperformed the S&P 500 index by approximately 4.5%.

Benchmark Comparison:

• BRT has historically outperformed the S&P 500 index, indicating its strategy's effectiveness.
• However, past performance is not a guarantee of future results.

Growth Trajectory

BRT's recent performance and unique strategy suggest potential for continued growth, although further market validation is needed.

Liquidity

Average Trading Volume: Approximately 15,000 shares per day. Bid-Ask Spread: Tight spread, indicating relatively low trading costs.

Market Dynamics

Factors affecting BRT:

• Market volatility: Higher volatility can create opportunities for BRT's short-term strategy.
• Investor sentiment: Changes in investor sentiment can influence stock prices and impact BRT's performance.
• Economic data: Economic indicators can affect overall market trends and BRT's holdings.

Competitors

Key competitors with market share percentages:

• IVV (iShares CORE S&P 500): 45.98%
• SPY (SPDR S&P 500 ETF Trust): 29.38%
• VOO (Vanguard S&P 500 ETF): 15.84%

Expense Ratio

BRT's expense ratio is 0.95%, which is slightly higher than some passive large-cap ETFs but lower than actively managed competitors.

Investment Approach and Strategy

Strategy: Actively managed, using a quantitative model to identify short-term reversal opportunities in large-cap stocks. Composition: Primarily holds large-cap US stocks with a focus on those exhibiting reversal patterns.

Key Points

• Actively managed ETF employing a unique short-term reversal strategy.
• Aims to generate positive returns regardless of market direction.
• Experienced management team with quantitative expertise.
• Higher expense ratio than some passive competitors.
• Relatively recent launch, requiring further track record validation.

Risks

• Volatility: BRT's active strategy exposes it to potentially higher volatility than passive large-cap ETFs.
• Market Risk: BRT's performance depends on the underlying stock market conditions.
• Short-Term Focus: The strategy's short-term nature may not be suitable for all investors.

Who Should Consider Investing

BRT might be suitable for investors seeking:

• Active management and a distinct short-term reversal strategy.
• Exposure to large-cap US equities with potential for outperformance.
• Tolerance for higher volatility than passive investments.

Fundamental Rating Based on AI

Rating: 7 out of 10.

Justification:

BRT's unique strategy, experienced management, and competitive performance provide a strong foundation. However, its recent launch and smaller market share necessitate further performance validation and market acceptance. Additionally, a slightly higher expense ratio could be a drawback for some investors.

Overall, BRT presents an interesting option for investors seeking active management and exposure to a unique short-term reversal strategy within the large-cap US equity space.

Resources and Disclaimers

Data Sources:

• ETF.com
• Vesper Holdings website
• Yahoo Finance

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. It is essential to conduct thorough research and consult with a financial professional before making any investment decisions.