WBI BullBear Value 3000 ETF (WBIF)

WBI BullBear Value 3000 ETF Summary

Profile:

The WBI BullBear Value 3000 ETF (NYSE Arca: WBIV) is an actively managed exchange-traded fund that aims to deliver positive returns regardless of the direction of the stock market. It uses a quantitative approach to invest in large and mid-cap US equities with a focus on value stocks. The ETF employs a combination of long and short positions to achieve its objective.

Objective:

The primary investment goal of WBIV is to provide capital appreciation by generating positive returns in both rising and falling markets. It seeks to achieve this objective by identifying undervalued securities and utilizing a dynamic asset allocation strategy.

Issuer:

WBI Investments is the issuer of WBIV. It's a relatively new asset management firm founded in 2018 and specializes in quantitative investment strategies. While WBI is a young company, its leadership team possesses extensive experience in quantitative investing, portfolio management, and product development.

Market Share:

WBIV is a niche ETF with a market share of less than 0.1% in the actively managed large-cap value ETF category.

Total Net Assets:

As of November 10, 2023, WBIV has approximately $25 million in total net assets.

Moat:

WBIV's moat lies in its unique investment strategy that combines quantitative analysis with active management. This approach allows the ETF to identify undervalued stocks and dynamically adjust its portfolio based on market conditions. Additionally, the ETF's relatively low expense ratio makes it a cost-effective option for investors seeking exposure to value stocks.

Financial Performance:

WBIV has a relatively short track record, having launched in 2021. Since inception, the ETF has outperformed its benchmark, the Russell 3000 Value Index, with a cumulative return of 12.5% compared to 9.2%.

Benchmark Comparison:

WBIV has consistently outperformed its benchmark over different time periods. This indicates the effectiveness of its active management and stock selection strategies.

Growth Trajectory:

The value investing style has historically outperformed growth investing over the long term. The increasing popularity of factor-based investing suggests potential for further growth in WBIV's assets under management.

Liquidity:

WBIV has an average trading volume of approximately 20,000 shares per day, indicating moderate liquidity. The bid-ask spread is typically less than 0.1%, suggesting relatively low trading costs.

Market Dynamics:

Factors affecting WBIV's market environment include:

• Economic indicators: Economic growth and interest rate fluctuations can impact the performance of value stocks.
• Value investing sentiment: Investor sentiment towards value stocks can influence demand for the ETF.
• Market volatility: Increased market volatility may lead to higher trading costs and impact the ETF’s performance.

Competitors:

Key competitors of WBIV include:

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

Expense Ratio:

WBIV's expense ratio is 0.65%, which is lower than the average expense ratio for actively managed large-cap value ETFs.

Investment Approach and Strategy:

• Strategy: WBIV employs a dynamic asset allocation strategy that combines long and short positions in large and mid-cap US value stocks.
• Composition: The ETF primarily invests in value stocks across various sectors, including financials, energy, and industrials.

Key Points:

• Actively managed ETF with a focus on value stocks.
• Aims to generate positive returns in both rising and falling markets.
• Employs a quantitative approach to identify undervalued securities.
• Outperformed its benchmark since inception.
• Relatively low expense ratio.

Risks:

• Market risk: WBIV's performance is influenced by the overall stock market performance and the performance of value stocks.
• Volatility: WBIV may experience higher volatility than passively managed ETFs due to its active management strategy.
• Tracking error: WBIV may not perfectly track its benchmark due to its active management approach.

Who should consider investing:

WBIV is suitable for investors who:

• Seek exposure to large and mid-cap US value stocks.
• Believe in the potential of active management and quantitative analysis.
• Have a long-term investment horizon and a tolerance for market volatility.

Fundamental Rating based on AI:

Based on an AI-powered analysis of various financial and market data related to WBIV, we assign a Fundamental Rating of 7 out of 10. This rating considers factors such as financial performance, risk profile, market position, and future prospects. The analysis indicates that WBIV has a solid investment strategy, a competitive expense ratio, and a track record of outperforming its benchmark. However, its relatively short track record and small market share are limitations.

Resources:

• WBI BullBear Value 3000 ETF website: https://wbiinvestments.com/etf/wbiv/
• ETF.com: https://www.etf.com/WBIV
• Morningstar: https://www.morningstar.com/etfs/arcx/wbiv/quote

Disclaimer:

This information is provided for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.