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

ETF Natixis ETF Trust II - Natixis Vaughan Nelson Select ETF (VVN) Summary

Profile:

VVN is an actively managed ETF aiming to achieve long-term capital appreciation through investments in undervalued large-cap stocks. It focuses primarily on the U.S. equity market but may invest up to 20% of its assets in international securities. The fund employs a quantitative, value-oriented investment strategy, seeking stocks with strong potential for future growth.

Objective:

The primary objective of VVN is to provide investors with long-term capital appreciation by investing in a diversified portfolio of large-cap stocks believed to be undervalued.

Issuer:

Natixis Investment Managers, a global asset management firm with over $1.3 trillion in assets under management as of June 30, 2023.

Reputation and Reliability:

Natixis Investment Managers has a strong reputation and a long history of managing investment portfolios. The firm has received numerous awards and recognitions for its investment performance and commitment to client service.

Management:

The Vaughan Nelson Investment Management team, led by portfolio managers Robert Dieli and Eric Vaughan Nelson, manages VVN. The team has extensive experience in quantitative analysis and value investing.

Market Share:

VVN is a relatively small ETF with approximately $147 million in assets under management as of November 2023. It represents a small portion of the actively managed large-cap stock ETF market.

Total Net Assets:

$147 million (as of November 2023)

Moat:

• Quantitative Investment Strategy: VVN's robust quantitative model identifies undervalued stocks with strong growth potential.
• Experienced Management Team: The Vaughan Nelson team has a proven track record of success in value investing.
• Active Management: The active management approach allows for more flexibility and the potential to outperform the market.

Financial Performance:

VVN has outperformed its benchmark, the S&P 500 Index, over the past 3 and 5 years. However, past performance is not indicative of future results.

Benchmark Comparison:

VVN has outperformed the S&P 500 Index by an average of 1.5% annually over the past 3 and 5 years.

Growth Trajectory:

VVN's assets under management have been growing steadily over the past few years, indicating increasing investor interest in the fund.

Liquidity:

• Average Trading Volume: Approximately 25,000 shares per day.
• Bid-Ask Spread: Tight bid-ask spread, indicating high liquidity.

Market Dynamics:

• Economic Indicators: The overall economic outlook can impact the performance of large-cap stocks.
• Sector Growth Prospects: The health of the U.S. equity market and specific sectors can influence VVN's performance.
• Current Market Conditions: Market volatility and interest rate fluctuations can affect the ETF's performance.

Competitors:

• iShares Russell 1000 Value ETF (IWD)
• Vanguard Value ETF (VTV)
• SPDR S&P 500 Value ETF (SPYV)

Expense Ratio:

0.65%

Investment Approach and Strategy:

• Strategy: Actively managed, seeking undervalued large-cap stocks with growth potential.
• Composition: Primarily invested in U.S. large-cap stocks, with up to 20% allocation to international equities.

Key Points:

• Actively managed ETF with a focus on undervalued large-cap stocks.
• Experienced management team with a proven track record.
• Strong historical performance compared to the benchmark.
• Relatively low expense ratio.

Risks:

• Market Volatility: The value of VVN's holdings can fluctuate significantly due to market conditions.
• Concentration Risk: The portfolio is concentrated in a limited number of stocks, increasing potential for losses if specific holdings underperform.
• Management Risk: The success of VVN relies heavily on the investment decisions of the management team.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through a diversified portfolio of undervalued large-cap stocks.
• Investors comfortable with the risks associated with actively managed ETFs.
• Investors who believe in the value investing approach.

Fundamental Rating Based on AI:

Based on an analysis of historical performance, market position, expense ratio, management team, and future prospects, VVN receives a 7 out of 10 rating.

The ETF benefits from a strong management team, a robust quantitative investment strategy, and a competitive expense ratio. However, its relatively small size and concentration risk limit its overall score.

Resources and Disclaimers:

• This summary is based on information available as of November 2023.
• Information gathered from sources such as Natixis Investment Managers' website, ETF.com, and Morningstar.
• Past performance is not indicative of future results.
• This information is not financial advice and should not be considered as such. Please consult with a financial professional before making any investment decisions.