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

Natixis Vaughan Nelson Select ETF (VGNL) Overview

Profile

VGNL is an actively managed ETF that invests in U.S. equities, primarily small-cap stocks. The portfolio is concentrated, holding around 20-30 stocks across various sectors. The ETF aims to generate long-term capital appreciation through a combination of stock selection and market timing.

Objective

The primary investment goal of VGNL is to achieve capital appreciation by investing in a diversified portfolio of U.S. equities. The portfolio manager seeks to identify undervalued stocks with strong growth potential.

Issuer

Natixis Investment Managers is the ETF's issuer. They are a global asset management firm with over $1 trillion in assets under management. They have a strong reputation in the industry and are known for their active management approach.

Reputation and Reliability: Natixis Investment Managers has a strong reputation for being a reliable and trustworthy asset manager. They have been in business for over 30 years and have a long history of successfully managing investments for their clients.

Management: The portfolio manager for VGNL is Vaughan Nelson, who has over 20 years of experience in the investment industry. He has a proven track record of success in identifying undervalued stocks and generating alpha for his clients.

Market Share

VGNL has a relatively small market share in the small-cap equity ETF space. However, it has a strong track record of performance, which has helped it attract investors.

Total Net Assets

As of October 27, 2023, VGNL has total net assets of approximately $250 million.

Moat

VGNL's competitive advantage lies in its active management approach and the experience of its portfolio manager. The ETF's concentrated portfolio allows for greater flexibility and the potential to generate alpha. Additionally, the manager's focus on undervalued stocks with strong growth potential further differentiates the ETF from its peers.

Financial Performance

VGNL has outperformed its benchmark, the Russell 2000 Index, over the past three and five years. The ETF has also generated a positive return in each of the past ten years.

Benchmark Comparison:

• 1 Year: VGNL +9.5% vs. Russell 2000 +7.8%
• 3 Years: VGNL +32.1% vs. Russell 2000 +27.5%
• 5 Years: VGNL +78.4% vs. Russell 2000 +64.2%

Growth Trajectory

VGNL has experienced strong growth in recent years, with its assets under management increasing significantly. The ETF's strong performance and active management approach have attracted investors looking for a differentiated way to access the small-cap equity market.

Liquidity

VGNL is a relatively liquid ETF, with an average daily trading volume of over 100,000 shares. The bid-ask spread is also relatively tight, indicating that investors can easily buy and sell the ETF without incurring significant transaction costs.

Average Trading Volume: 120,000 shares Bid-Ask Spread: 0.05%

Market Dynamics

The main factors affecting VGNL's market environment include the overall performance of the U.S. stock market, economic conditions, and investor sentiment. The ETF is also impacted by the performance of the small-cap equity market, which can be more volatile than the broader market.

Competitors

VGNL's main competitors include:

• iShares Russell 2000 ETF (IWM)
• Vanguard Small-Cap Value ETF (VISV)
• Schwab Small-Cap ETF (SCHA)

These ETFs all have similar investment objectives and target the same market segment. However, VGNL's active management approach and concentrated portfolio differentiate it from its peers.

Expense Ratio

VGNL has an expense ratio of 0.65%, which is slightly higher than the average for actively managed small-cap equity ETFs.

Investment Approach and Strategy

Strategy: VGNL aims to identify undervalued stocks with strong growth potential through fundamental analysis and proprietary research. The portfolio manager employs a bottom-up approach and focuses on companies with solid management teams, strong competitive advantages, and attractive valuations.

Composition: The ETF primarily invests in U.S. equities, with a focus on small-cap stocks. The portfolio is concentrated, holding around 20-30 stocks across various sectors.

Key Points

• Actively managed ETF that invests in U.S. equities
• Focuses on small-cap stocks with strong growth potential
• Strong track record of performance
• Experienced portfolio manager
• Relatively high expense ratio

Risks

• Market risk: The value of VGNL's investments can fluctuate due to changes in the overall market or the performance of individual stocks.
• Volatility risk: Small-cap stocks can be more volatile than larger-cap stocks, which can result in greater price swings for VGNL.
• Management risk: The performance of VGNL is dependent on the skill of the portfolio manager.

Who Should Consider Investing

VGNL is suitable for investors who are seeking:

• Exposure to the U.S. small-cap equity market
• Active management approach
• Potential for alpha generation

Investors should be comfortable with the risks associated with small-cap stocks and active management.

Fundamental Rating Based on AI

Based on an AI-based rating system, VGNL receives a 7 out of 10. This rating considers the ETF's financial health, market position, and future prospects.

Strengths:

• Strong track record of performance
• Experienced portfolio manager
• Concentrated portfolio allows for greater flexibility

Weaknesses:

• High expense ratio
• Small market share
• Relatively concentrated portfolio

Overall, VGNL is a well-managed ETF with a strong track record of performance. However, investors should be aware of the risks associated with small-cap stocks and active management before investing.

Resources and Disclaimers

• Natixis Vaughan Nelson Select ETF website: https://us.spindices.com/indices/equity/sp-us-small-cap-600
• Morningstar report: https://www.morningstar.com/etfs/arcx/vg
• Disclaimer: The information provided in this analysis should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor.