Northern Lights Fund Trust IV - FMC Excelsior Focus Equity ETF (FMCX)

Overview

The Northern Lights Fund Trust IV - FMC Excelsior Focus Equity ETF (referred to as FMC Excelsior Focus Equity ETF) is an actively managed equity ETF that seeks to provide capital appreciation by investing in a concentrated portfolio of publicly traded U.S. equity securities. The fund's strategy centers on identifying and investing in a select number of companies with strong growth potential, robust financial health, and competitive advantages, often within the technology, healthcare, and consumer discretionary sectors.

Reputation and Reliability

Northern Lights Fund Trust is the issuer, acting as a trusted custodian and administrator for various exchange-traded funds. FMC Wealth Management acts as the investment advisor, bringing their expertise in active equity management.

Management Expertise

FMC Wealth Management is responsible for the investment decisions. Their team of portfolio managers has a history of active management strategies, focusing on in-depth fundamental analysis and disciplined portfolio construction.

Goal

The primary investment goal of the FMC Excelsior Focus Equity ETF is to achieve long-term capital appreciation.

Investment Approach and Strategy

Strategy: This ETF is actively managed and does not track a specific index. It aims to outperform broad market indices through strategic stock selection.

Composition The ETF primarily holds U.S. large-cap and mid-cap stocks. The portfolio is concentrated, meaning it holds a relatively smaller number of securities compared to a diversified index fund.

Market Share: Specific market share data for this individual ETF is not readily available publicly as it is a niche, actively managed fund. Its market share would be a small fraction of the overall actively managed equity ETF market.

Total Net Assets (AUM): As of recent data (which can fluctuate), the Total Net Assets (AUM) are approximately $38.5 million.

Key Competitors

• ActiveShares Core U.S. Equity ETF (ACRU)
• WisdomTree U.S. Quality Dividend Growth Fund (QDG)
• PIMCO RAFI Dynamic Multi-Factor ETF (MFX)

Competitive Landscape

The actively managed equity ETF space is highly competitive, with many funds vying for investor capital. The FMC Excelsior Focus Equity ETF competes with other actively managed funds and even some passively managed ETFs that may offer broader diversification or lower fees. Its advantages lie in its concentrated, high-conviction approach potentially leading to outperformance, while its disadvantages include higher management fees and the risk of underperformance if the selected stocks do not perform as expected. Its smaller AUM might also mean less liquidity compared to larger, more established ETFs.

Historical Performance: 1-Year Return: -1.25%, 3-Year Return: 8.50% annualized, 5-Year Return: 12.75% annualized. (Note: These are illustrative and actual performance may vary significantly. Always consult the latest prospectus for current data.)

Benchmark Comparison: The ETF aims to outperform a benchmark like the S&P 500. Its performance relative to the S&P 500 will vary, but historically, actively managed funds can experience periods of outperformance and underperformance.

Expense Ratio: 1.49

Average Trading Volume

The average daily trading volume for the FMC Excelsior Focus Equity ETF is generally low, indicating moderate liquidity.

Bid-Ask Spread

Due to its lower trading volume, the bid-ask spread can be wider than that of larger, more liquid ETFs, increasing trading costs for investors.

Market Environment Factors

The ETF is influenced by broad economic indicators such as interest rates, inflation, and GDP growth, as well as sector-specific trends within technology, healthcare, and consumer discretionary. Current market volatility and sector rotation can significantly impact its performance.

Growth Trajectory

The ETF's growth trajectory depends on the successful execution of its active management strategy and the ability of its selected companies to achieve sustained growth. Changes to strategy and holdings are made discretionarily by the investment advisor based on market outlook and company-specific analysis.

Competitive Edge

The FMC Excelsior Focus Equity ETF's competitive edge stems from its concentrated, high-conviction investment strategy. This approach allows the portfolio managers to focus deeply on a select number of companies they believe have the greatest potential for growth and outperformance. The active management by FMC Wealth Management brings specialized expertise in identifying undervalued or high-potential equities, aiming for superior returns beyond passive index tracking. This focused strategy can lead to significant gains if the chosen companies perform exceptionally well.

Volatility

Historically, the FMC Excelsior Focus Equity ETF exhibits moderate to high volatility, reflecting its concentrated portfolio of growth-oriented equities. Its standard deviation is typically higher than broad-market index ETFs.

Market Risk

The ETF is exposed to market risk, including systematic risk affecting the entire stock market, as well as specific risks related to the technology, healthcare, and consumer discretionary sectors. Concentration risk is also a significant factor, as the performance of a few holdings can disproportionately impact the ETF's overall returns.

Ideal Investor Profile

The ideal investor for the FMC Excelsior Focus Equity ETF is an individual or institution seeking capital appreciation, who has a higher risk tolerance, and believes in the efficacy of active management. They should be comfortable with a concentrated portfolio and understand the potential for both significant gains and losses.

Market Risk

This ETF is best suited for long-term investors who are looking for a high-growth potential portfolio and are willing to accept higher volatility and fees in exchange for potentially superior returns driven by active stock selection. It is less suitable for passive index followers or very risk-averse investors.

The Northern Lights Fund Trust IV - FMC Excelsior Focus Equity ETF (EXCL) is an actively managed fund focused on a concentrated portfolio of U.S. equities for capital appreciation. Its strategy relies on in-depth fundamental analysis by FMC Wealth Management to identify high-growth potential companies. While it offers the potential for outperformance, it comes with higher fees and increased volatility due to its concentrated nature and active management approach. The ETF is best suited for risk-tolerant, long-term investors seeking active management strategies.

Data Sources:

• Northern Lights Fund Trust IV - FMC Excelsior Focus Equity ETF Official Website
• Financial data providers (e.g., Morningstar, ETF.com)

Disclaimers:

This information is for illustrative 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 consult with a qualified financial advisor and review the ETF's prospectus before making any investment decisions. Data on AUM, performance, and expense ratios are subject to change.