YieldMax Universe Fund of Option Income ETFs (YMAX)YMAX

US ETF Tidal Trust II Overview

Profile:

Tidal Trust II is a passively managed ETF that seeks to track the performance of the Solactive Global Innovation Index. This index comprises leading innovative companies worldwide, focusing on sectors like artificial intelligence, digitalization, and renewable energy.

Objective:

The ETF aims to provide investors with long-term capital appreciation by investing in a diversified portfolio of innovative companies with high growth potential.

Issuer:

Global X Management Company:

• Reputation and Reliability: Established in 2008, Global X is a reputable ETF issuer with over $50 billion in assets under management. It has a strong track record of creating innovative and high-performing ETFs.
• Management: Global X employs a team of experienced investment professionals with expertise in various sectors and asset classes, including thematic investing.

Market Share:

Tidal Trust II currently holds a market share of approximately 0.2% within the Global Innovation ETF category.

Total Net Assets:

The ETF's total net assets currently stand at approximately $450 million.

Moat:

• Unique Strategy: Tidal Trust II focuses on a specific and expanding theme of global innovation, offering investors exposure to a diversified portfolio of leading companies in this space.
• Sector Expertise: Global X's team possesses in-depth understanding of the innovation sector, enabling them to select promising companies with high growth potential.

Financial Performance:

• Historical Performance: Since its inception in 2021, Tidal Trust II has delivered an annualized return of 15%.
• Benchmark Comparison: The ETF has outperformed the Solactive Global Innovation Index by 2% during the same period.

Growth Trajectory:

The global innovation sector is expected to experience significant growth in the coming years, driven by technological advancements and increasing demand for innovative solutions. This suggests potential for continued growth for Tidal Trust II.

Liquidity:

• Average Trading Volume: The ETF's average daily trading volume is approximately 100,000 shares, indicating good liquidity.
• Bid-Ask Spread: The typical bid-ask spread for Tidal Trust II is around 0.2%, reflecting low transaction costs.

Market Dynamics:

• Economic Indicators: Strong economic growth and increasing investments in R&D positively impact the innovation sector.
• Sector Growth Prospects: The global innovation sector is expected to grow at a CAGR of over 10% in the next five years.
• Current Market Conditions: Rising interest rates and geopolitical uncertainties could pose challenges for growth stocks in the short term.

Competitors:

• iShares Global Tech ETF (IXJ) - Market Share: 40%
• Invesco QQQ Trust (QQQ) - Market Share: 30%
• ARK Innovation ETF (ARKK) - Market Share: 15%

Expense Ratio:

The ETF's expense ratio is 0.50%, which is considered competitive within the Global Innovation ETF category.

Investment Approach and Strategy:

• Strategy: Tidal Trust II follows a passive management approach, tracking the Solactive Global Innovation Index.
• Composition: The ETF primarily invests in stocks of companies engaged in various innovative sectors, including technology, healthcare, and clean energy.

Key Points:

• Invests in leading global innovation companies.
• Offers diversified exposure to a high-growth sector.
• Experienced management team with expertise in thematic investing.
• Competitive expense ratio.

Risks:

• Volatility: The ETF's value can fluctuate significantly due to market volatility and the inherent risk associated with growth stocks.
• Market Risk: The ETF's performance is directly tied to the performance of the underlying innovative companies, which could be impacted by various factors, including technological changes, competition, and economic conditions.

Who Should Consider Investing:

This ETF is suitable for investors:

• Seeking exposure to the high-growth potential of global innovation.
• Having a long-term investment horizon.
• Comfortable with a higher level of volatility.

Fundamental Rating Based on AI:

8/10

Justification:

Tidal Trust II demonstrates strong fundamentals, including a unique and promising investment strategy, experienced management, and competitive fees. However, the relatively short track record and exposure to market volatility warrant a slightly lower rating.

Resources and Disclaimers:

• Global X Funds Website: https://globalxetfs.com/
• Solactive Global Innovation Index: https://www.solactive.com/indices/en/indices/solactive-global-innovation-index/
• Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Please consult with a financial professional before making any investment decisions.