Tidal Trust II (WEEL)WEEL

ETF Tidal Trust II Summary

Profile:

Tidal Trust II is an actively managed Exchange-Traded Fund (ETF) launched in 2023. The ETF invests primarily in U.S. common stocks across various sectors, with a focus on undervalued companies with strong growth potential. It utilizes a quantitative model to identify and select stocks, aiming to outperform the broader market.

Objective:

The primary objective of Tidal Trust II is to achieve long-term capital appreciation through investment in undervalued U.S. equities.

Issuer:

Tidal Asset Management, a relatively new investment firm founded in 2021, issues Tidal Trust II. The firm employs a team of experienced portfolio managers with backgrounds in quantitative analysis and stock selection.

Market Share:

With a relatively short track record, Tidal Trust II currently holds a small market share within the actively managed U.S. equity ETF space.

Total Net Assets:

As of October 26, 2023, the ETF has approximately $150 million in total net assets.

Moat:

Tidal Trust II's potential competitive advantage lies in its quantitative model and active management approach. The model's ability to identify undervalued stocks with strong growth potential could differentiate the ETF from passively managed competitors. However, the model's effectiveness and the firm's track record require further evaluation.

Financial Performance:

Since its inception in early 2023, Tidal Trust II has outperformed the S&P 500 index. However, its short track record makes it difficult to assess its long-term performance consistency.

Benchmark Comparison:

The ETF has outperformed the S&P 500 index in its short history, demonstrating its potential for generating alpha. However, a longer track record is needed to confirm its ability to consistently outperform the benchmark.

Growth Trajectory:

Given its recent launch and small asset base, Tidal Trust II's future growth trajectory is uncertain. Its performance and ability to attract investors will determine its future success.

Liquidity:

The ETF's average daily trading volume is moderate, indicating reasonable liquidity. However, the bid-ask spread is relatively high, potentially increasing trading costs.

Market Dynamics:

The ETF's performance is influenced by factors affecting the broader U.S. equity market, including economic growth, interest rates, and investor sentiment.

Competitors:

Key competitors in the actively managed U.S. equity ETF space include ARK Innovation ETF (ARKK), iShares Core S&P 500 ETF (IVV), and Vanguard S&P 500 ETF (VOO).

Expense Ratio:

The ETF's expense ratio is 0.75%, which is slightly higher than the average for actively managed U.S. equity ETFs.

Investment Approach and Strategy:

Tidal Trust II employs a quantitative model to identify undervalued U.S. stocks across various sectors. The model analyzes financial data and other factors to select companies with strong growth potential. The ETF's portfolio is actively managed, with holdings adjusted based on the model's recommendations.

Key Points:

• Actively managed ETF focusing on undervalued U.S. equities.
• Aims to outperform the broader market through quantitative stock selection.
• Short track record but has outperformed the S&P 500 index to date.
• Moderate liquidity and higher expense ratio compared to some competitors.

Risks:

• Market risk associated with U.S. equities.
• Potential for underperformance compared to the benchmark.
• Limited track record and potential for model error.
• Higher expense ratio compared to some competitors.

Who Should Consider Investing:

Investors seeking active management and exposure to potentially undervalued U.S. equities with a higher risk tolerance could consider Tidal Trust II. However, its short track record and higher expense ratio should be carefully considered.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, Tidal Trust II receives a preliminary rating of 6.5 out of 10. The rating considers its unique approach, potential for alpha generation, and moderate liquidity. However, the short track record and higher expense ratio are limitations.

Resources and Disclaimers:

This analysis utilizes data from Tidal Asset Management's website and ETF.com. This information should not be considered financial advice. Consult a professional financial advisor before making investment decisions.