ERShares Private-Public Crossover ETF (XOVR)

Overview

The ERShares Private-Public Crossover ETF (HERO) seeks long-term capital appreciation by investing in publicly traded companies with significant private market exposure, focusing on innovative companies that are disrupting traditional industries.

Reputation and Reliability

ERShares is a relatively new and smaller ETF issuer focusing on thematic and factor-based investment strategies. Their reputation is still developing, and their reliability is based on their adherence to investment guidelines.

Management Expertise

ERShares' management team has experience in investment management and quantitative analysis, with a focus on identifying companies benefiting from disruptive innovation.

Goal

To achieve long-term capital appreciation by investing in companies with significant private market exposure, focusing on innovation and disruption.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but uses a proprietary quantitative approach to identify publicly traded companies that are likely to benefit from their private market investments or exposure.

Composition The ETF primarily holds publicly traded stocks across various sectors that are involved in or exposed to private market investments, venture capital, and disruptive technologies.

Market Share: HERO's market share within the broader innovation or disruption ETF space is relatively small compared to larger, more established funds.

Total Net Assets (AUM): 15650000

Key Competitors

• ARK Innovation ETF (ARKK)
• Global X Disruptive Technology ETF (CLOU)
• First Trust Innovation Leaders ETF (FTFT)

Competitive Landscape

The competitive landscape is crowded with many innovation and technology-focused ETFs. HERO differentiates itself by focusing on companies with private market exposure, but it faces stiff competition from larger funds with greater brand recognition and liquidity. HERO offers a more focused approach but may have higher volatility due to its concentrated holdings.

Historical Performance: Historical performance data varies. Check recent ETF information for accurate numerical data. Past performance is not indicative of future results.

Benchmark Comparison: The ETF's performance should be compared to a broad innovation or technology index, such as the ARKK or a custom index, to assess its effectiveness in generating alpha.

Expense Ratio: 0.79

Average Trading Volume

Average trading volume for HERO is moderate, which may lead to wider bid-ask spreads compared to more liquid ETFs.

Bid-Ask Spread

The bid-ask spread can vary, and is dependent on the market supply and demand of the ETF.

Market Environment Factors

Economic indicators, technological advancements, venture capital activity, and investor sentiment towards innovation and disruptive technologies significantly impact HERO's performance.

Growth Trajectory

The ETF's growth trajectory depends on its ability to attract assets, maintain its investment strategy, and generate competitive returns. Changes to strategy and holdings reflect the manager's outlook on private and public investment opportunities.

Competitive Edge

HERO's competitive advantage lies in its unique focus on companies with private market exposure, offering investors access to potential upside from venture capital and disruptive innovation. This targeted approach can provide diversification benefits and potential for high growth, but also introduces additional risks. The fund's quantitative methodology aims to identify companies best positioned to benefit from private market trends. The ETF seeks to capture the crossover between private and public markets, a space not heavily covered by other ETFs.

Volatility

HERO's volatility is likely to be high due to its focus on growth-oriented companies and exposure to private market dynamics.

Market Risk

Specific risks include valuation risk, liquidity risk in underlying holdings, and market sentiment towards innovation and technology stocks. The ETF also carries the inherent risk of investing in small-cap and mid-cap companies.

Ideal Investor Profile

The ideal investor is one with a high risk tolerance, a long-term investment horizon, and an interest in innovation and disruptive technologies. The investor should understand the potential volatility and unique risks associated with private market exposure.

Market Risk

HERO is more suitable for long-term investors with a growth-oriented investment strategy. It is not ideal for conservative investors or those seeking stable income.

The ERShares Private-Public Crossover ETF (HERO) offers a unique investment strategy focusing on companies with significant private market exposure. Its focus on innovation and disruptive technologies provides potential for high growth but also comes with increased volatility. The ETF caters to investors with a high risk tolerance and long-term investment horizon who seek to capitalize on the crossover between private and public markets. Investors should carefully consider its expense ratio, liquidity, and competitive landscape before investing.

Data Sources:

• ERShares website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results. Market share figures are estimates and may vary based on reporting sources and methodologies.