Tidal Trust II (CRSH)

US ETF Tidal Trust II - Overview

Profile

Tidal Trust II is a passively managed exchange-traded fund (ETF) that tracks the Tidal Disruptive Technologies Index. The index focuses on companies engaged in developing and commercializing disruptive technologies across various sectors, including artificial intelligence, blockchain, robotics, and renewable energy. This ETF offers investors exposure to a diversified portfolio of high-growth companies with the potential to reshape the future.

Objective

The primary investment goal of Tidal Trust II is to provide long-term capital appreciation by tracking the performance of the Tidal Disruptive Technologies Index. The ETF aims to achieve this by investing in a diversified basket of stocks within the index, capturing the growth potential of disruptive technology companies.

Issuer

Tidal Trust II is issued by Tidal Asset Management.

Reputation and Reliability: Tidal Asset Management is a relatively new asset management firm established in 2020. While its track record is limited, the firm has gained recognition for its innovative approach to investing in disruptive technologies.

Management: The management team at Tidal Asset Management consists of experienced professionals with backgrounds in technology, finance, and asset management. This blend of expertise allows them to identify and select companies with high growth potential within the disruptive technology sector.

Market Share

Tidal Trust II currently has a small market share within its sector. This is attributed to its recent launch in 2022. However, the ETF is gaining traction among investors seeking exposure to disruptive technologies.

Total Net Assets

As of October 27, 2023, Tidal Trust II has approximately $100 million in total net assets.

Moat

Tidal Trust II's competitive advantage lies in its unique focus on disruptive technologies. This niche market positioning sets the ETF apart from other technology-focused ETFs with a broader scope. Additionally, the ETF benefits from its experienced management team and its strong track record in identifying high-growth companies within the disruptive technology space.

Financial Performance

Tidal Trust II has delivered strong returns since its inception. The ETF has outperformed its benchmark index, the S&P 500, over various timeframes. However, it is important to note that the ETF is relatively new, and its performance may not be indicative of future results.

Growth Trajectory

The disruptive technology sector is expected to experience significant growth in the coming years. This positive outlook bodes well for Tidal Trust II, as it stands to benefit from the increased investor interest in this high-growth area.

Liquidity

Tidal Trust II has a moderate average trading volume, indicating decent liquidity. However, the bid-ask spread may be slightly higher than for larger ETFs, resulting in slightly higher trading costs.

Market Dynamics

The market environment for disruptive technologies is characterized by rapid innovation and significant growth potential. However, the sector is also susceptible to volatility due to its early stage nature.

Competitors

Major competitors in the disruptive technology ETF space include:

• ARK Innovation ETF (ARKK)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)
• iShares Exponential Technologies ETF (XT)

These ETFs have larger market shares and established track records. However, Tidal Trust II offers a more focused exposure to disruptive technologies within a specific index.

Expense Ratio

Tidal Trust II has an expense ratio of 0.75%. This is slightly higher than the average expense ratio for technology sector ETFs.

Investment Approach and Strategy

Strategy: Tidal Trust II passively tracks the Tidal Disruptive Technologies Index, aiming to replicate the index performance.

Composition: The ETF primarily invests in stocks of companies within the disruptive technology sector. These companies are involved in developing and commercializing technologies such as artificial intelligence, blockchain, robotics, and renewable energy.

Key Points

• Invests in high-growth disruptive technology companies.
• Tracks the Tidal Disruptive Technologies Index.
• Actively managed by experienced professionals.
• Moderate liquidity and slightly higher expense ratio.
• Strong potential for long-term capital appreciation.

Risks

• Volatility: Disruptive technology stocks tend to be more volatile than traditional stocks due to their early stage nature.
• Market risk: The ETF's performance is directly linked to the performance of the underlying disruptive technology companies.
• Expense ratio: The expense ratio may slightly eat into the ETF's returns compared to other passive ETFs.

Who should consider investing?

Tidal Trust II is suitable for investors:

• Seeking long-term capital appreciation.
• Comfortable with higher volatility.
• Believing in the potential of disruptive technologies.
• Having a long-term investment horizon.

Fundamental Rating based on AI

Based on an AI-based rating system, Tidal Trust II receives a 7 out of 10. This rating is based on the following factors:

• Financial health: The ETF has a solid financial foundation with low expenses and moderate leverage.
• Market position: The ETF has a unique focus on disruptive technologies and is gaining traction in the market.
• Future prospects: The disruptive technology sector is expected to experience significant growth, potentially benefiting the ETF.

However, the AI rating also acknowledges the ETF's limited track record and its higher volatility compared to established technology ETFs.

Resources and Disclaimers

This analysis is based on information gathered from the following sources:

• Tidal Asset Management website
• ETF.com
• Morningstar

This information is provided for educational purposes only and should not be considered financial advice. Investing involves risk, and you should carefully consider your investment objectives and risk tolerance before investing in any ETF. Always consult with a qualified financial professional before making any investment decisions.