TrueShares Active Yield ETF (ERNZ)

Overview

The TrueShares Active Yield ETF (PAVE) focuses on actively managed investment in infrastructure-related companies. It aims to generate income and capital appreciation by investing in a diversified portfolio of securities, including dividend-paying stocks, bonds, and other income-generating instruments, primarily within the infrastructure sector.

Reputation and Reliability

TrueShares, the issuer, is known for its actively managed ETF offerings. While a relatively newer player compared to some legacy providers, they aim to differentiate through active management strategies. Reliability is assessed by their operational consistency and adherence to regulatory standards.

Management Expertise

The ETF is managed by TrueWealth Management, LLC. The management team's expertise is centered around identifying income-generating opportunities, particularly within sectors that benefit from long-term secular trends like infrastructure development. Their strategy involves active selection and adjustments based on market conditions.

Goal

The primary investment goal of the TrueShares Active Yield ETF is to provide investors with a combination of current income and capital appreciation.

Investment Approach and Strategy

Strategy: The TrueShares Active Yield ETF does not track a specific index. It employs an active management strategy to select securities based on their income-generating potential and growth prospects, with a focus on the infrastructure sector.

Composition The ETF holds a diversified mix of assets, primarily focusing on equities of companies involved in infrastructure, but also potentially including fixed-income securities, preferred stocks, and other income-producing instruments. The allocation can vary based on the active management strategy.

Market Share: Specific market share data for niche ETFs like PAVE is often not readily available in granular detail. Its market share within the broader infrastructure ETF segment would be modest given the dominance of larger, passive ETFs.

Total Net Assets (AUM): 27124000

Key Competitors

• Alerian MLP ETF (AMLP)
• Global X MLP ETF (MLPX)
• Global X Utilities ETF (IDU)

Competitive Landscape

The infrastructure ETF landscape is competitive, with many passive ETFs tracking broad infrastructure indices. PAVE differentiates itself through active management and a focus on yield-generating opportunities within the sector. Its advantage lies in the potential for manager expertise to outperform benchmarks, but it faces the disadvantage of higher expense ratios and the inherent risks of active management, where performance can lag passive strategies.

Historical Performance: As of recent data, PAVE has shown varied historical performance. Over the past year, it may have experienced moderate returns, while longer-term performance (3-5 years) might show less consistent growth compared to broader market indices, reflecting the challenges of active management in niche sectors. Specific figures for various periods are best obtained from real-time financial data providers.

Benchmark Comparison: PAVE does not explicitly track a single benchmark index. Its performance is typically compared against relevant infrastructure sector indices or a blend of income-focused benchmarks. Due to its active strategy, its performance relative to benchmarks can vary significantly.

Expense Ratio: 0.85

Average Trading Volume

The average trading volume for the TrueShares Active Yield ETF is relatively low, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread for the TrueShares Active Yield ETF is typically wider than for highly liquid ETFs, suggesting a higher cost for active trading.

Market Environment Factors

PAVE is influenced by interest rate policies, government infrastructure spending initiatives, commodity prices, and overall economic growth, as these factors directly impact the profitability and investment appeal of infrastructure companies. Regulatory changes and global geopolitical events can also play a significant role.

Growth Trajectory

The growth trajectory of PAVE is dependent on the continued relevance and performance of the infrastructure sector and the success of its active management strategy. Changes in holdings would reflect the manager's assessment of market opportunities and risks within the infrastructure space and their income-generating potential.

Competitive Edge

The TrueShares Active Yield ETF's competitive edge lies in its active management approach, aiming to capitalize on specific income-generating opportunities within the infrastructure sector that might be overlooked by passive index funds. Its focus on yield can appeal to income-seeking investors. The expertise of TrueWealth Management in identifying undervalued or high-dividend-paying infrastructure assets is also a key differentiator.

Volatility

The historical volatility of the TrueShares Active Yield ETF is moderate, influenced by the cyclical nature of infrastructure investments and the inclusion of equities. Its volatility can be higher than broad-market bond ETFs but potentially lower than highly speculative equity ETFs.

Market Risk

Specific market risks for PAVE include interest rate risk (affecting bond valuations and financing costs for infrastructure projects), regulatory risk (changes in government policies impacting infrastructure development), commodity price fluctuations (affecting energy and materials companies within infrastructure), and sector-specific risks related to project execution and demand for infrastructure services.

Ideal Investor Profile

The ideal investor for TrueShares Active Yield ETF is one seeking income from their investments, with a moderate risk tolerance, and an interest in the long-term growth potential of the infrastructure sector.

Market Risk

This ETF is best suited for investors looking for a source of regular income, potentially as a component of a diversified portfolio, and who are comfortable with the risks associated with active management and the infrastructure sector. It might appeal more to long-term investors who can ride out short-term market fluctuations.

The TrueShares Active Yield ETF (PAVE) is an actively managed fund focused on generating income and capital appreciation from infrastructure-related companies. It aims to identify undervalued or high-yielding assets within this sector, differing from passive index-tracking ETFs. While offering potential for income generation, it carries moderate volatility and market-specific risks inherent to the infrastructure industry. Its active management strategy presents both opportunities for outperformance and the risk of underperformance compared to benchmarks.

Data Sources:

• TrueShares ETF official website (data on holdings, strategy, issuer information)
• Financial data aggregators (e.g., ETF.com, Yahoo Finance, Morningstar for performance, AUM, expense ratio)
• Industry analysis reports for competitive landscape and market share.

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. ETF performance can vary significantly, and past performance is not indicative of future results. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions. Market share data for niche ETFs can be estimates and subject to change.