Counterpoint Quantitative Equity ETF (CPAI)

Overview

The Counterpoint Quantitative Equity ETF (ticker: QP) is designed to provide investors with exposure to a diversified portfolio of U.S. equities, selected and managed using a quantitative investment methodology. The strategy aims to identify stocks with favorable quantitative characteristics, such as value, momentum, and quality factors, while also considering risk management principles.

Reputation and Reliability

Counterpoint Mutual Funds, the issuer, has a history of developing quantitative investment strategies. While not as large as some established ETF providers, they have a dedicated focus on systematic investing.

Management Expertise

The ETF is managed by Counterpoint Mutual Funds, which employs a team of quantitative analysts and portfolio managers with expertise in developing and implementing data-driven investment approaches.

Goal

The primary investment goal of the Counterpoint Quantitative Equity ETF is to achieve long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index. Instead, it employs a proprietary quantitative model to select equities based on a predefined set of factors.

Composition The ETF primarily holds U.S. equity securities, aiming for diversification across various sectors and market capitalizations.

Market Share: As of the latest available data, the Counterpoint Quantitative Equity ETF has a relatively small market share within the broad U.S. equity ETF landscape.

Total Net Assets (AUM): 355000000

Key Competitors

• iShares Core S&P 500 ETF (IVV)
• Vanguard Total Stock Market ETF (VTI)
• Invesco QQQ Trust (QQQ)

Competitive Landscape

The U.S. equity ETF market is highly competitive, dominated by large providers offering broad market index funds. The Counterpoint Quantitative Equity ETF operates in a niche segment focused on quantitative strategies, facing competition from both other quantitative ETFs and active equity funds. Its advantages lie in its specific systematic approach, which can offer a disciplined and potentially less emotional investment process. Disadvantages may include a less established track record and potentially higher fees compared to passive index ETFs.

Historical Performance: Historical performance data for the Counterpoint Quantitative Equity ETF shows varied results across different time periods. Detailed returns are available through financial data providers.

Benchmark Comparison: The ETF's performance is typically compared against broad U.S. equity benchmarks such as the S&P 500. Its performance relative to these benchmarks can fluctuate based on market conditions and the effectiveness of its quantitative model.

Expense Ratio: 0.59

Average Trading Volume

The ETF's average trading volume is moderate, suggesting reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for the ETF is generally tight, indicating efficient trading and low transactional costs for market participants.

Market Environment Factors

The ETF is influenced by broad economic indicators, interest rate policies, inflation trends, and overall investor sentiment towards equities. Sector-specific performance and growth prospects within the U.S. economy also play a significant role.

Growth Trajectory

The ETF's growth trajectory is dependent on the sustained effectiveness of its quantitative strategy and its ability to attract new assets. Changes to its quantitative model or an expansion of its investment universe could indicate strategic shifts.

Competitive Edge

The Counterpoint Quantitative Equity ETF's primary competitive edge lies in its disciplined, rules-based investment approach. By systematically analyzing stocks based on quantitative factors like value, momentum, and quality, it aims to remove emotional biases from investment decisions. This quantitative methodology provides transparency and a predictable process, distinguishing it from actively managed funds that rely on discretionary stock selection.

Volatility

The ETF's historical volatility is comparable to broad U.S. equity market indices, but can experience periods of higher or lower volatility depending on the performance of the factors driving its stock selection.

Market Risk

The ETF is subject to market risk, which is the risk that the value of its underlying equity holdings will decline due to factors affecting the overall stock market, such as economic downturns, geopolitical events, or changes in investor sentiment.

Ideal Investor Profile

The ideal investor for the Counterpoint Quantitative Equity ETF is one who understands and believes in quantitative investment strategies, seeks long-term capital growth, and is comfortable with the inherent risks of equity investing.

Market Risk

This ETF is best suited for long-term investors who are looking for a systematically managed approach to U.S. equity exposure and are comfortable with a less traditional investment methodology compared to broad index funds.

The Counterpoint Quantitative Equity ETF (QP) offers a quantitative approach to U.S. equity investing, aiming for long-term capital appreciation. Managed by Counterpoint Mutual Funds, it utilizes a proprietary model to select stocks based on quantitative factors. While it does not track a specific index, it competes in a crowded ETF market. Its expense ratio is 0.59%, and its liquidity is moderate. The ETF is best suited for long-term investors who favor a systematic and data-driven investment strategy.

Data Sources:

• Counterpoint Mutual Funds Official Website
• Financial Data Aggregators (e.g., Yahoo Finance, Morningstar)

Disclaimers:

This information is for informational purposes only and does not constitute investment advice. ETF performance is not guaranteed, and investors may lose money. Past performance is not indicative of future results. Investors should consult with a financial advisor before making any investment decisions.