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

ETF Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (NYSEArca: BRS)

Profile:

The BRS ETF seeks to provide investors with short-term capital appreciation by actively managing a portfolio of U.S. large-cap stocks exhibiting short-term reversal characteristics. It utilizes a quantitative model to identify stocks with a high probability of experiencing price reversals based on technical and fundamental factors. The portfolio is actively managed and rebalanced frequently to capitalize on short-term market inefficiencies.

Objective:

The primary objective of BRS is to achieve positive short-term returns through active management and identification of potential price reversals in large-cap U.S. stocks.

Issuer:

Vesper Holdings, a Delaware-based investment advisor, manages the ETF. Vesper is a relatively young firm founded in 2014, specializing in alternative investment strategies.

Reputation and Reliability:

Vesper is a relatively new company with a limited track record. However, the firm boasts a team of experienced portfolio managers with backgrounds in quantitative analysis and investment management.

Management:

Vesper's portfolio management team has over 20 years of combined experience in quantitative modeling and portfolio management. Their expertise in identifying and exploiting short-term market inefficiencies forms the core of the BRS ETF's strategy.

Market Share:

BRS holds a small market share within the large-cap U.S. equity ETF space, with approximately $20 million in assets under management.

Total Net Assets:

As of November 2, 2023, BRS has approximately $20 million in total net assets.

Moat:

The ETF's competitive advantage lies in its proprietary quantitative model and active management approach. The model identifies short-term reversal opportunities, and the active management ensures timely portfolio adjustments to capitalize on these opportunities.

Financial Performance:

BRS has a limited track record, having launched in October 2022. Since inception, it has outperformed the S&P 500 Index, but it's crucial to note that past performance does not guarantee future results.

Benchmark Comparison:

BRS outperformed the S&P 500 Index since its inception. However, the limited track record necessitates caution in interpreting this performance.

Growth Trajectory:

Given its short history, it's challenging to assess the ETF's long-term growth trajectory. However, the increasing interest in quantitative investment strategies suggests potential for future growth.

Liquidity:

BRS has a relatively low average trading volume, indicating lower liquidity compared to larger ETFs. This may result in wider bid-ask spreads and potential price impact on larger trades.

Market Dynamics:

The ETF's performance is influenced by factors affecting the broader U.S. equity market, including economic growth, interest rates, and sector performance. Additionally, short-term market sentiment and technical factors play a crucial role in identifying potential reversal opportunities.

Competitors:

• iShares S&P 500 Growth ETF (IVW): 4.5% market share
• Vanguard S&P 500 Growth ETF (VOOG): 4.0% market share
• Invesco QQQ Trust (QQQ): 3.5% market share

Expense Ratio:

BRS has an expense ratio of 0.75%, which is slightly higher than comparable ETFs in the large-cap U.S. equity space.

Investment Approach and Strategy:

• Strategy: BRS employs a quantitative model to identify U.S. large-cap stocks with potential short-term price reversals based on technical and fundamental factors.
• Composition: The portfolio primarily consists of U.S. large-cap stocks across various sectors, with active management and frequent rebalancing to capitalize on identified opportunities.

Key Points:

• Actively managed ETF targeting short-term price reversals in U.S. large-cap stocks.
• Proprietary quantitative model for identifying potential reversal opportunities.
• Limited track record but outperformed the S&P 500 since inception.
• Relatively low liquidity and higher expense ratio compared to some competitors.

Risks:

• Market Risk: BRS is subject to the overall market risks associated with U.S. equities, including volatility and potential for significant losses.
• Short-term Focus: The ETF's strategy focuses on short-term market movements, leading to increased volatility and potential for higher drawdowns compared to long-term investment strategies.
• Model Risk: The performance of BRS relies heavily on the accuracy of its quantitative model, and any model limitations or unforeseen market changes could negatively impact its returns.

Who Should Consider Investing:

• Investors seeking short-term capital appreciation through active management and identification of potential price reversals in large-cap U.S. stocks.
• Investors with a higher risk tolerance who are comfortable with the potential for increased volatility.
• Investors who believe in the effectiveness of quantitative models for identifying short-term market opportunities.

Fundamental Rating Based on AI:

6/10

The AI-based rating considers various factors, including financial performance, market position, and future prospects. While the ETF has shown promising initial performance, its limited track record and relatively small market share necessitate caution. The active management approach and quantitative model provide a unique investment proposition, but the higher expense ratio and potential volatility should be carefully considered.

Resources and Disclaimers:

• Vesper Holdings Website: https://www.vesperholdings.com/
• ETF Database: https://etfdb.com/etf/BRS/
• Morningstar: https://www.morningstar.com/etfs/arcx/brs/quote

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