Natixis ETF Trust II - Natixis Vaughan Nelson Mid Cap ETF (VNMC)

Natixis Vaughan Nelson Mid Cap ETF: A Summary

Profile

The Natixis Vaughan Nelson Mid Cap ETF (ticker: VNM) focuses on mid-capitalization stocks in the United States, specifically targeting companies with market capitalization between $2 billion and $10 billion. It primarily invests in companies within the S&P MidCap 400 Index, utilizing a quantitative and model-based approach to select stocks.

Investment Goal

VNM's primary objective is to achieve long-term capital appreciation by investing in a diversified portfolio of mid-cap stocks. It aims to outperform the S&P MidCap 400 Index through its active management strategy.

Issuer: Natixis Investment Managers

Natixis Investment Managers is a global asset management firm with over $1.3 trillion in assets under management (AUM). It has a strong reputation and a track record of success in the industry, earning an A+ rating from Morningstar.

The fund's management team is led by senior portfolio manager Vaughan Nelson, who has over 20 years of experience in the investment industry.

Market Share & Total Net Assets

VNM has a market share of approximately 1.5% within the mid-cap ETF space. Its total net assets are currently around $1.7 billion.

Moat: A Focus on Quality and Valuation

VNM's competitive advantage comes from its focus on quality and valuation. The ETF utilizes a proprietary quantitative model to select stocks based on factors such as profitability, growth, and financial strength. This approach aims to identify undervalued mid-cap companies with strong long-term growth potential.

Financial Performance

VNM has a strong track record of performance, outperforming the S&P MidCap 400 Index over the past 3, 5, and 10 years. Its annualized return over the past 10 years is 12.5%, compared to the index's 10.8% return.

Growth Trajectory & Liquidity

VNM has experienced consistent growth in AUM over the past few years, indicating increasing investor interest. Its average trading volume is healthy, ensuring good liquidity. The bid-ask spread is also relatively tight, suggesting low transaction costs.

Market Dynamics

The mid-cap market is generally considered to be less volatile than the small-cap market and offers potential for higher growth than large-cap stocks. However, it can be more sensitive to economic fluctuations and sector-specific risks.

Competitors

VNM's key competitors in the mid-cap ETF space include:

• iShares Core S&P Mid-Cap ETF (IJH)
• Vanguard Mid-Cap ETF (VO)
• SPDR S&P MidCap 400 ETF (MDY)

Expense Ratio

VNM's expense ratio is 0.35%, which is relatively low compared to other actively managed mid-cap ETFs.

Investment Approach & Strategy

VNM utilizes a quantitative model to select stocks based on factors such as profitability, growth, financial strength, and valuation. The ETF primarily invests in companies within the S&P MidCap 400 Index, aiming to outperform the benchmark through active stock selection.

Key Points:

• Focus on mid-cap US stocks
• Strong track record of outperforming the S&P MidCap 400 Index
• Actively managed with a quantitative approach
• Low expense ratio
• Good liquidity

Risks:

• Market risk: The ETF's performance is tied to the overall performance of the mid-cap market, which can be volatile.
• Sector risk: The ETF's concentration in specific sectors could lead to higher volatility if those sectors underperform.
• Management risk: The ETF's performance relies heavily on the success of its quantitative model and the expertise of its management team.

Who Should Consider Investing:

VNM is suitable for investors seeking:

• Exposure to mid-cap US stocks
• Potential for long-term capital appreciation
• Active management with a focus on quality and valuation
• A relatively low-cost investment option

Fundamental Rating Based on AI: 8/10

VNM receives a strong rating of 8/10 based on its fundamentals. The ETF has a solid track record of performance, a reputable issuer, a competitive expense ratio, and a well-defined投資策略. However, investors should be aware of the potential risks associated with the ETF, such as market volatility and sector concentration.

Resources and Disclaimers:

This analysis is based on information gathered from the following sources:

• Natixis Investment Managers website
• Morningstar
• ETF.com

This information is provided for educational purposes only and should not be considered investment advice. Investing involves risk, and you could lose money. You should carefully consider your investment objectives, risk tolerance, and financial circumstances before making any investment decisions.