WBI BullBear Yield 3000 ETF (WBIG)

ETF WBI BullBear Yield 3000 ETF: An Overview

Profile:

WBI BullBear Yield 3000 ETF (Ticker: WBI) is an actively managed exchange-traded fund (ETF) seeking to provide investment results that, before fees and expenses, track the performance of the S&P 500® High Yield Dividend Aristocrats Index. This index comprises 3,000 companies in the S&P 500 that have consistently paid and increased dividends for at least 20 years. WBI offers exposure to high-yielding dividend-paying stocks within the S&P 500.

Objective:

WBI's primary investment objective is to generate high dividend income and potential capital appreciation by investing in a combination of dividend-paying stocks and U.S. Treasury bonds.

Issuer:

WBI is issued by YieldShares, LLC, a Delaware limited liability company formed in 2018. YieldShares focuses on developing and sponsoring exchange-traded products designed to generate income and meet various investor needs.

Market Share:

WBI accounts for a small portion of the broader high-yield dividend ETF market, with an estimated market share of approximately 0.5%.

Total Net Assets:

As of October 26, 2023, WBI has approximately $25 million in total net assets.

Moat:

WBI's primary competitive advantage lies in its focus on dividend-paying stocks within the S&P 500. This strategy provides investors access to a diversified basket of high-yielding companies with established dividend track records.

Financial Performance:

WBI's performance has been mixed since its inception in 2021. The ETF has generated positive total returns, outperforming the S&P 500 during certain periods. However, it has also experienced periods of negative returns, highlighting the inherent volatility associated with dividend-paying stocks.

Growth Trajectory:

The high-yield dividend ETF market is expected to experience moderate growth in the coming years, driven by growing investor demand for income-generating investments. WBI is well-positioned to capitalize on this trend by offering a unique investment strategy focused on established dividend-paying companies.

Liquidity:

WBI's average daily trading volume is moderate, indicating sufficient liquidity for most investors. However, the bid-ask spread might be slightly wider than other ETFs due to its smaller size.

Market Dynamics:

Economic growth, interest rate fluctuations, and investor sentiment towards dividend-paying stocks are key factors impacting WBI's market environment.

Competitors:

Key competitors in the high-yield dividend ETF space include:

• SPDR S&P Dividend ETF (SDY) - Market Share: 40%
• Vanguard High Dividend Yield ETF (VYM) - Market Share: 35%
• iShares Select Dividend ETF (DVY) - Market Share: 20%

Expense Ratio:

WBI's expense ratio is 0.85%, which is slightly higher than the average expense ratio for high-yield dividend ETFs.

Investment Approach and Strategy:

WBI utilizes a combination of an actively managed portfolio of dividend-paying stocks and U.S. Treasury bonds to achieve its investment objective. The ETF seeks to track the S&P 500® High Yield Dividend Aristocrats Index, which comprises companies with established dividend track records.

Key Points:

• Access to high-yielding dividend-paying stocks within the S&P 500.
• Potential for capital appreciation through stock price growth.
• Income generation through dividend payments.
• Actively managed portfolio.

Risks:

• Volatility: Dividend-paying stocks can experience higher volatility than the broader market, leading to potential fluctuations in WBI's share price.
• Market Risk: WBI's performance is tied to the performance of the underlying stocks and bonds, which could be impacted by various market factors.
• Interest Rate Risk: Rising interest rates could decrease the attractiveness of dividend-paying stocks, potentially affecting WBI's performance.

Who Should Consider Investing:

WBI is suitable for investors seeking income generation through dividend payments and potential capital appreciation from high-yielding dividend-paying stocks. Investors should have a moderate to high risk tolerance and a long-term investment horizon.

Evaluation of ETF WBI BullBear Yield 3000 ETF's fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI':

Fundamental Rating Based on AI: 7/10

WBI receives a 7 out of 10 based on an AI-driven analysis of its fundamentals. This rating considers various factors, including its financial performance, market position, and future prospects.

Justification:

WBI's focus on high-yield dividend-paying stocks offers investors a unique investment opportunity. The ETF's track record of generating income and outperforming the S&P 500 during certain periods is encouraging. However, WBI's smaller market share and higher expense ratio compared to its competitors slightly dampen its overall rating.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• YieldShares website
• ETF.com
• Morningstar

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