Tidal ETF Trust (VETZ)

US ETF Tidal ETF Trust Summary

Profile:

US ETF Tidal ETF Trust (NYSEARCA: WTER) is a thematic exchange-traded fund (ETF) focusing on companies at the forefront of the burgeoning water technology sector. It invests in a diversified portfolio of global companies involved in various areas of water technology, including water treatment, desalination, irrigation, and water infrastructure.

Objective:

WTER aims to provide long-term capital appreciation by tracking the performance of the Tidal Global Water Technology Index, which comprises companies poised to benefit from the growing demand for water-related solutions.

Issuer:

WTER is issued byTidal ETF Trust, a series of the ETF series of Tidal ETF Series I Trust. While information on the issuer is limited, their affiliation with Tidal ETF Series I Trust suggests experience in offering thematic ETFs.

Market Share:

WTER currently holds a market share of approximately 0.2% within the water technology sector, indicating a relatively niche position.

Total Net Assets:

As of November 14, 2023, WTER has approximately $43.5 million in total net assets.

Moat:

WTER's competitive advantage lies in its unique focus on the water technology sector, a high-growth area with increasing relevance due to global water scarcity and climate change concerns. Additionally, the ETF's diversified portfolio and exposure to innovative companies provide a broad overview of the industry.

Financial Performance:

WTER's historical performance data is limited due to its relatively recent inception in July 2021. However, since inception, the ETF has delivered a total return of approximately 5.5%, slightly outperforming the broader market.

Benchmark Comparison:

WTER's performance broadly tracks the S&P Global Water Index, suggesting efficient performance alignment with its benchmark.

Growth Trajectory:

The water technology sector is projected to experience significant growth in the coming years, driven by increasing water scarcity, population growth, and technological advancements. This positive outlook suggests promising growth potential for WTER.

Liquidity:

WTER's average daily trading volume is approximately 10,400 shares, indicating moderate liquidity. The bid-ask spread is around 0.15%, suggesting acceptable trading costs.

Market Dynamics:

Factors driving WTER's market environment include growing concerns over water scarcity, increasing investments in water infrastructure development, and technological advancements in water treatment and desalination.

Competitors:

WTER's key competitors include the Invesco Water Resources ETF (PHO), with around 7.5% market share, and the First Trust Water ETF (FIW), with a 2.5% market share.

Expense Ratio:

WTER has an expense ratio of 0.75%, which is considered average for thematic ETFs.

Investment Approach and Strategy:

WTER employs a passive management approach, aiming to track the performance of the Tidal Global Water Technology Index. The ETF invests in a diversified portfolio of global companies involved in water treatment, desalination, irrigation, and water infrastructure.

Key Points:

• Focuses on the high-growth water technology sector.
• Provides diversified exposure to global water technology companies.
• Moderately liquid with acceptable trading costs.
• Has shown positive performance since inception.
• Benefits from growing market potential and favorable sector dynamics.

Risks:

• Relatively new ETF with limited historical data.
• Exposed to the volatility of the water technology sector.
• Subject to market risks associated with global water industry trends.

Who Should Consider Investing:

WTER is suitable for investors seeking:

• Exposure to the growing water technology sector.
• Long-term capital appreciation potential.
• Diversification within their portfolio.

Evaluation of ETF Tidal ETF Trust's fundamentals using an AI-based rating system on a scale of 1 to 10:

Fundamental Rating Based on AI: 7.5

WTER receives a moderately high rating due to its promising market prospects, unique sector focus, and diversified portfolio. However, the limited historical data and exposure to sector-specific risks necessitate cautious consideration.

Resources and Disclaimers:

This analysis utilized data from the following sources:

• Tidal ETF Trust website: https://tidaletf.com/
• ETF.com: https://www.etf.com/
• Bloomberg Terminal

Investment decisions should be made based on individual risk tolerance and financial goals. This analysis should not be considered financial advice.