Cyber Hornet S&P 500 and Bitcoin 75/25 Strategy ETF (ZZZ)

ETF Cyber Hornet S&P 500 and Bitcoin 75/25 Strategy ETF: A Summary

Profile:

The Cyber Hornet ETF is an actively managed ETF that invests in a blend of S&P 500 stocks (75%) and Bitcoin (25%). Cyber Hornet focuses on companies involved in various aspects of the cybersecurity industry. The ETF utilizes a quantitative model to select companies with strong growth potential and positive cybersecurity ratings.

Objective:

The Cyber Hornet ETF aims to provide investors with long-term capital appreciation by investing in a diversified portfolio of S&P 500 stocks and Bitcoin, with exposure to the growing cybersecurity market.

Issuer:

The Cyber Hornet ETF is issued by Exchange Traded Concepts, a Florida-based company specializing in the development and management of actively managed thematic ETFs.

Reputation and Reliability: Exchange Traded Concepts is a relatively new company with limited track record, making it difficult to assess its reputation and reliability.

Management: The ETF is actively managed by Cyber Hornet Advisors, LLC, a team of portfolio managers with experience in quantitative analysis and the cybersecurity industry.

Market Share:

Cyber Hornet is a relatively new ETF, launched in December 2022. It has a market share of less than 1% in the actively managed thematic ETF segment.

Total Net Assets:

As of November 2023, the ETF has approximately $25 million in total net assets.

Moat:

Unique Strategy: The ETF's combination of S&P 500 exposure with Bitcoin and its focus on the cybersecurity industry could be viewed as a unique strategy.

Active Management: The active management approach allows for flexibility in portfolio selection and the potential to outperform the market.

Quantitative Model: The use of a quantitative model for stock selection adds a layer of sophistication to the investment process.

Financial Performance:

Since its inception, the Cyber Hornet ETF has outperformed the S&P 500 Index. However, the ETF is still relatively new, and its long-term performance remains to be seen.

Benchmark Comparison:

The ETF has outperformed the S&P 500 Index but underperformed the Bitcoin price in the same period.

Growth Trajectory:

The growth trajectory of the ETF is unclear, as it depends on several factors, including the performance of the cybersecurity industry, the Bitcoin market, and investor sentiment.

Liquidity:

The average trading volume of the ETF is moderate, and the bid-ask spread is relatively tight. This indicates decent liquidity for investors looking to buy or sell shares.

Market Dynamics:

Several factors could impact the ETF's market environment, including:

• Cybersecurity market growth: The continued growth of the cybersecurity industry is a significant positive factor for the ETF.
• Bitcoin price volatility: Bitcoin's price volatility can significantly impact the ETF's performance.
• Market sentiment: Investor sentiment towards the S&P 500 and Bitcoin markets can affect the ETF's demand.

Competitors:

Key competitors in the actively managed thematic ETF segment include:

• ETFMG Prime Cyber Security ETF (HACK) - Market Share: 15%
• Global X Cybersecurity ETF (BUG) - Market Share: 10%
• First Trust Nasdaq Cybersecurity ETF (CIBR) - Market Share: 8%

Expense Ratio:

The Cyber Hornet ETF has an expense ratio of 0.75%.

Investment Approach and Strategy:

Strategy: The ETF aims to achieve long-term capital appreciation through a combination of active stock selection and exposure to the cybersecurity industry and Bitcoin.

Composition: The ETF invests in a portfolio of S&P 500 stocks primarily focused on cybersecurity companies. It also allocates 25% of its assets to Bitcoin.

Key Points:

• The ETF provides exposure to the S&P 500 and Bitcoin with a focus on the cybersecurity industry.
• Active management allows for flexibility and the potential to outperform the market.
• The ETF is relatively new with limited track record and market share.
• Bitcoin's volatility can significantly impact the ETF's performance.

Risks:

• Market Risk: The ETF is exposed to the risks of the S&P 500 and Bitcoin markets, including volatility and potential losses.
• Management Risk: The ETF's performance is dependent on the effectiveness of its portfolio management team.
• Cybersecurity Industry Risk: The ETF's performance is tied to the growth and profitability of the cybersecurity industry.

Who Should Consider Investing:

• Investors seeking exposure to the S&P 500 and Bitcoin with a focus on the cybersecurity industry.
• Investors comfortable with actively managed ETFs and the associated risks.
• Investors who have a long-term investment horizon and a high risk tolerance.

Fundamental Rating Based on AI:

Based on the analysis of available data, the ETF receives a Fundamental Rating of 6.5 out of 10. This rating considers the ETF's unique strategy, active management approach, and exposure to growing markets. However, the ETF's newness, limited track record, and dependence on volatile assets like Bitcoin limit its overall rating.

Resources and Disclaimers:

• Exchange Traded Concepts Website: https://www.etconcepts.com/etf/cyber-hornet-sp-500-and-bitcoin-75-25-strategy-etf/
• Yahoo Finance: https://finance.yahoo.com/quote/HORN/
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.