Roundhill Acquirers Deep Value ETF (DVP)

Overview

The Roundhill Acquirers Deep Value ETF (DEEP) seeks to provide investment results that correspond to the Acquirers Deep Value Index. The fund primarily invests in a focused portfolio of deep value U.S. equities, using an objective, quantitative approach to identify companies trading at low valuations relative to their earnings and assets.

Reputation and Reliability

Roundhill Investments is known for launching innovative ETFs, often focusing on niche and thematic areas. Their reliability is generally good, though they are a relatively newer and smaller issuer compared to industry giants.

Management Expertise

The management team at Roundhill Investments has experience in the ETF industry. Their expertise is particularly strong in identifying emerging investment themes.

Goal

To provide investment results that correspond to the price and yield performance, before fees and expenses, of the Acquirers Deep Value Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Acquirers Deep Value Index, which employs a quantitative methodology to identify U.S. companies with the highest Acquirer's Multiple, a valuation metric considering enterprise value relative to operating earnings.

Composition The ETF predominantly holds U.S. equities that are considered to be deep value stocks. These stocks are selected based on their Acquirer's Multiple, a measure of enterprise value to operating earnings.

Market Share: DEEP's market share in the deep value ETF segment is relatively small compared to broader value ETFs.

Total Net Assets (AUM): 49284145

Key Competitors

• Invesco Pure Value ETF (RPV)
• Avantis U.S. Small Cap Value ETF (AVUV)
• Vanguard Value ETF (VTV)
• iShares Core S&P Small-Cap ETF (IJR)

Competitive Landscape

The deep value ETF landscape is competitive, with numerous ETFs targeting value stocks using various methodologies. DEEP's advantage lies in its distinct Acquirer's Multiple strategy, but it faces disadvantages regarding smaller AUM and liquidity compared to larger, more established value ETFs.

Historical Performance: Historical performance data should be sourced from financial data providers. Past performance is not indicative of future results.

Benchmark Comparison: Compare DEEP's performance against the Acquirers Deep Value Index (its benchmark) and broader value indices to assess tracking efficiency.

Expense Ratio: 0.3

Average Trading Volume

DEEP exhibits a moderate average daily trading volume, which should be considered when making large trades.

Bid-Ask Spread

DEEP has a bid-ask spread that should be reviewed before trading as it may impact overall returns.

Market Environment Factors

Economic indicators, interest rate changes, and investor sentiment towards value stocks significantly influence DEEP's performance. Positive economic growth and rising interest rates can benefit value stocks.

Growth Trajectory

DEEP's growth trajectory is linked to the popularity of deep value investing and its ability to consistently track the Acquirers Deep Value Index. Changes to the index methodology or holdings can impact its future performance.

Competitive Edge

DEEP's competitive advantage stems from its unique Acquirer's Multiple strategy, which targets deeply undervalued companies based on enterprise value to operating earnings. This distinct valuation approach differentiates it from traditional value ETFs. However, its relatively smaller size and lower liquidity compared to larger value ETFs can be a disadvantage. The focused portfolio construction may lead to higher volatility but also potentially higher returns when the deep value strategy is in favor.

Volatility

DEEP can exhibit higher volatility due to its concentrated portfolio of deep value stocks. The fund may experience significant price fluctuations, especially during market downturns or periods of economic uncertainty.

Market Risk

DEEP's performance is susceptible to broader market risks, sector-specific risks (depending on its holdings), and the risk that its deep value strategy may underperform during growth-oriented market cycles.

Ideal Investor Profile

The ideal investor for DEEP is one who understands and believes in the deep value investing philosophy, has a long-term investment horizon, and is comfortable with higher levels of volatility. These investors are seeking potentially higher returns from undervalued companies.

Market Risk

DEEP is suitable for long-term investors who are comfortable with risk and believe in the deep value investment style. It may not be appropriate for risk-averse investors or those with a short-term investment horizon.

The Roundhill Acquirers Deep Value ETF (DEEP) offers exposure to U.S. equities identified as deeply undervalued based on the Acquirers Multiple. It appeals to value-oriented investors with a long-term focus and risk tolerance. The ETF's smaller size and focused portfolio can lead to both higher potential returns and higher volatility. Investors should carefully consider the ETF's investment strategy, risk factors, and expenses before investing. DEEP's performance is tied to the deep value investment style and the effectiveness of the Acquirers Deep Value Index.

Data Sources:

• Roundhill Investments Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. ETF performance can vary, and past performance is not indicative of future results. Investors should consult with a financial advisor before making any investment decisions.