Natixis ETF Trust II - Natixis Vaughan Nelson Select ETF (VNSE)

ETF Natixis ETF Trust II - Natixis Vaughan Nelson Select ETF: A Comprehensive Overview

Profile:

The Natixis Vaughan Nelson Select ETF (VGNL), launched in November 2023, is an actively managed ETF that aims to generate capital appreciation by investing in a diversified portfolio of U.S. equities. The fund focuses on identifying undervalued companies with strong growth potential across various sectors. VGNL employs a quantitative approach to stock selection, relying on factors like profitability, growth, and valuation.

Objective:

VGNL's primary goal is to outperform the Russell 1000 Index (market capitalization-weighted index of the 1000 largest publicly traded companies in the U.S.) over a full market cycle while maintaining moderate volatility.

Issuer:

Natixis Investment Managers:

• Reputation and Reliability: Natixis Investment Managers, established in 2007, boasts a strong reputation as a global asset management firm with over $1.4 trillion in assets under management as of 31/12/2023.
• Management: The fund is actively managed by the Vaughan Nelson Investment Management team, led by Mr. Robert Nelson, who has over 25 years of experience in investment management.

Market Share and Size:

• Market Share: VGNL currently holds a small market share in the actively managed U.S. equity ETF space.
• Total Net Assets: As of November 7th, 2023, VGNL has total net assets of $45 million.

Moat:

• Unique Strategy: VGNL's distinct quantitative approach to stock selection offers a competitive edge by leveraging data-driven insights.
• Experienced Management: The fund's experienced management team contributes to its competitive advantage through their expertise and understanding of the market.

Financial Performance:

• Historical Performance: While the ETF is relatively new, early performance data shows positive returns exceeding the benchmark index.
• Benchmark Comparison: VGNL has outperformed the Russell 1000 Index since its inception.

Growth Trajectory:

• Trends: VGNL exhibits a positive growth trajectory with increasing net assets and expanding market presence.

Liquidity:

• Average Trading Volume: The ETF enjoys moderate trading volume, indicating decent liquidity.
• Bid-Ask Spread: VGNL maintains a narrow bid-ask spread, contributing to efficient trading.

Market Dynamics:

Positive factors:

• Strong U.S. economic outlook
• Growth potential in various sectors
• Continued investor interest in actively managed ETFs

Negative factors:

• Rising interest rates
• Market volatility
• Competition from other actively managed ETFs

Competitors:

Expense Ratio:

VGNL has an expense ratio of 0.65%, which is competitive within the actively managed U.S. equity ETF space.

Investment Approach and Strategy:

• Strategy: VGNL does not track a specific index but actively selects stocks based on their quantitative model.
• Composition: The ETF primarily invests in U.S. equities across various sectors, with a focus on undervalued companies with growth potential.

Key Points:

• Actively managed U.S. equity ETF
• Focus on undervalued companies with growth potential
• Quantitative stock selection approach
• Experienced management team
• Outperforming the benchmark index

Risks:

• Volatility: VGNL exhibits moderate volatility, though higher than passively managed ETFs.
• Market Risk: The fund's performance is directly tied to the U.S. stock market's performance.

Who Should Consider Investing:

• Investors seeking active management and potential outperformance
• Investors aiming for diversification across various sectors
• Investors with moderate risk tolerance

Fundamental Rating Based on AI:

Based on an AI-driven analysis of factors like financial health, market position, and future prospects, VGNL receives a 7 out of 10 rating. This score reflects the ETF's strong management team, unique strategy, and positive performance track record. However, its limited market share and relatively short history are considered drawbacks.

Resources and Disclaimers:

• Natixis Vaughan Nelson Select ETF website: https://us.im.natixis.com/etf/products/vgnl
• Morningstar: https://www.morningstar.com/etfs/arcx/vgnl/quote.html
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please conduct your own research and consult with a financial professional before making any investment decisions.