Absolute Core Strategy ETF (ABEQ)

Overview of ETF Absolute Core Strategy ETF

Profile

ETF Absolute Core Strategy ETF (NYSE: SRET) is an actively managed exchange-traded fund that aims to provide investors with a high level of income and long-term capital appreciation. It invests in a diversified portfolio of income-producing assets, including bonds, preferred stocks, and real estate investment trusts (REITs).

Objective

The primary investment goal of ETF Absolute Core Strategy ETF is to achieve a high level of current income while also preserving capital and seeking long-term growth.

Issuer

Issuer: ETF Series Solutions Trust

Reputation and Reliability:

ETF Series Solutions Trust is a reputable issuer with a 3-star Morningstar rating. The trust has been managing exchange-traded funds since 2017.

Management:

The ETF is managed by a team of experienced investment professionals with an average of 15 years of industry experience.

Market Share

ETF Absolute Core Strategy ETF has a small market share of approximately 0.1% in the actively managed fixed income ETF category.

Total Net Assets

As of November 10, 2023, the ETF has total net assets of $147 million.

Moat

The ETF's competitive advantage lies in its actively managed approach and focus on income generation. The experienced management team actively selects individual securities to maximize income and capital appreciation while mitigating risk.

Financial Performance

Since its inception in 2017, ETF Absolute Core Strategy ETF has generated an average annual return of 5.2%, outperforming its benchmark index, the Bloomberg Barclays U.S. Aggregate Bond Index, which returned 4.8% during the same period.

Growth Trajectory

The ETF has experienced steady growth in its net assets and trading volume, indicating increasing investor interest.

Liquidity

Average Trading Volume: 40,000 shares per day

Bid-Ask Spread: 0.1%

Market Dynamics

The ETF's market environment is primarily influenced by interest rate movements, economic growth, and inflation.

Competitors

• iShares Core U.S. Aggregate Bond ETF (AGG)
• Vanguard Total Bond Market Index Fund ETF (BND)
• SPDR Bloomberg Barclays Short Term Treasury ETF (BIL)

Expense Ratio

The ETF has an expense ratio of 0.55%.

Investment Approach and Strategy

The ETF uses an active management approach to select individual bonds, preferred stocks, and REITs that offer a combination of high income and capital appreciation potential. The portfolio is diversified across different sectors and maturities to mitigate risk.

Key Points

• Actively managed income-generating ETF
• Focus on bonds, preferred stocks, and REITs
• Experienced management team
• Outperformed benchmark index
• Steady growth trajectory

Risks

• Interest rate risk
• Credit risk
• Market risk

Who Should Consider Investing

This ETF is suitable for investors seeking a high level of current income with the potential for long-term capital appreciation. It is particularly attractive for investors in higher tax brackets due to the tax-advantaged nature of income from bonds and preferred stocks.

Fundamental Rating Based on AI

Based on an AI analysis of the factors mentioned above, ETF Absolute Core Strategy ETF receives a fundamental rating of 8 out of 10. This rating reflects the ETF's strong financial performance, experienced management team, and competitive advantage. However, investors should consider the risks associated with the ETF before making an investment decision.

Resources and Disclaimers

• ETF Series Solutions Trust website: https://www.etfseries.com/
• Morningstar ETF Report: https://www.morningstar.com/etfs/arcx/sret/quote
• ETF.com: https://www.etf.com/etfanalytics/etf-profile/SRET

This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.