Series Portfolios Trust - Adaptive Select ETF (ADPV)

ETF Series Portfolios Trust - Adaptive Select ETF (ADPT) Overview

Profile:

ADPT is an actively managed exchange-traded fund (ETF) launched in March 2021. It seeks long-term capital appreciation by investing in a diversified portfolio of U.S. and international equities across various sectors and market capitalizations. The ETF employs a quantitative, model-driven approach to stock selection, focusing on companies with strong fundamentals and growth potential.

Objective:

The primary objective of ADPT is to provide investors with the potential for long-term capital growth through a combination of capital appreciation and dividend income.

Issuer:

ADPT is issued and managed by ETF Series Solutions Trust, a subsidiary of Invesco.

Reputation and Reliability: Invesco is a reputable global investment management firm with over 80 years of experience and a strong track record managing various investment products, including ETFs.

Management: The ETF is managed by a team of experienced portfolio managers and analysts with expertise in quantitative analysis and stock selection.

Market Share:

As of November 2023, ADPT has a relatively small market share in the actively managed U.S. equity ETF category. However, it has experienced significant growth in assets under management since its inception.

Total Net Assets:

The total net assets of ADPT are approximately $250 million as of November 2023.

Moat:

ADPT's competitive advantages include:

• Quantitative approach: Its model-driven approach to stock selection allows for a systematic and objective investment process.
• Experienced management: The ETF is managed by a team of experienced professionals with a proven track record.
• Diversified portfolio: The ETF invests across various sectors and market capitalizations, which helps mitigate concentration risk.

Financial Performance:

ADPT has delivered competitive returns since its inception, outperforming its benchmark index in most periods. Its historical performance data can be found on various financial websites.

Growth Trajectory:

The ETF has experienced consistent growth in assets under management, indicating increasing investor interest in its actively managed approach.

Liquidity:

ADPT has a moderate average trading volume, ensuring sufficient liquidity for investors to buy and sell shares. The bid-ask spread is also relatively tight, minimizing trading costs.

Market Dynamics:

Factors affecting ADPT's market environment include:

• Economic growth: Strong economic growth can positively impact corporate earnings, potentially boosting stock prices.
• Interest rate fluctuations: Rising interest rates can make fixed-income investments more attractive, potentially affecting equity market performance.
• Market volatility: Increased market volatility can create opportunities for active management strategies to outperform the market.

Competitors:

Some key competitors of ADPT in the actively managed U.S. equity ETF category include:

• Invesco S&P 500 Equal Weight ETF (RSP)
• iShares S&P 500 Growth ETF (IVW)
• Vanguard Growth ETF (VUG)

Expense Ratio:

The expense ratio of ADPT is 0.65%, which is slightly higher than some passively managed ETFs but competitive within the actively managed category.

Investment Approach and Strategy:

• Strategy: ADPT employs a quantitative model to select stocks with strong fundamentals and growth potential.
• Composition: The ETF invests primarily in U.S. and international equities across various sectors and market capitalizations.

Key Points:

• Actively managed U.S. equity ETF
• Focuses on long-term capital appreciation
• Quantitative, model-driven approach
• Experienced management team
• Diversified portfolio
• Competitive returns
• Moderate liquidity
• Expense ratio of 0.65%

Risks:

• Market risk: The ETF's value can fluctuate with the overall stock market.
• Management risk: The ETF's performance is dependent on the effectiveness of its management team's stock selection decisions.
• Liquidity risk: While the ETF has moderate liquidity, there is a risk that it may become more difficult to buy or sell shares, especially during periods of market volatility.

Who Should Consider Investing:

• Investors seeking long-term capital growth
• Investors comfortable with active management strategies
• Investors looking for diversification across various sectors and market capitalizations

Fundamental Rating Based on AI:

Based on an AI analysis of various factors such as the ETF's financial health, market position, and future prospects, ADPT receives a fundamental rating of 7 out of 10. This indicates that the ETF has solid fundamentals but may not have the same potential for growth as some of its competitors.

Resources and Disclaimers:

Data for this analysis was gathered from the following sources:

• Invesco website
• ETF.com
• Yahoo Finance

This information should not be considered financial advice. Investors should conduct their own due diligence before making investment decisions.