REX MSTR Growth & Income ETF (MSII)

Overview

REX MSTR Growth & Income ETF (MXGU) is an actively managed ETF seeking long-term capital appreciation and current income, primarily investing in securities related to the Master Income SMA Strategy.

Reputation and Reliability

REX Shares is a relatively newer ETF issuer, with a focus on innovative and niche investment strategies. Their reputation is still developing.

Management Expertise

The management team aims to deliver a balanced approach to growth and income through active portfolio management.

Goal

To provide long-term capital appreciation and current income.

Investment Approach and Strategy

Strategy: The ETF employs an active management strategy, investing in securities selected by the sub-advisor. It doesn't track a specific index.

Composition The ETF primarily invests in dividend-paying equities and income-generating securities.

Market Share: MXGU has a relatively small market share within the broad growth & income ETF category.

Total Net Assets (AUM): 16553080

Key Competitors

• SCHD
• VYM
• DGRO

Competitive Landscape

The growth and income ETF space is highly competitive, dominated by large, low-cost index funds. MXGU's active management approach aims to differentiate it, but it faces the challenge of demonstrating consistent outperformance to justify its higher expense ratio. The actively managed approach could offer an advantage in certain market conditions, allowing for flexibility in asset allocation.

Historical Performance: Historical performance data needs to be sourced from relevant financial data providers and compared against the index.

Benchmark Comparison: Performance should be compared against a relevant benchmark like a blend of broad market indexes and fixed income indexes.

Expense Ratio: 0.89

Average Trading Volume

Average trading volume is relatively low, which can impact trading costs.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, potentially increasing transaction costs.

Market Environment Factors

Economic growth, interest rates, and equity market performance all impact the ETF's performance. Sentiment around dividend paying stocks and income securities is also important.

Growth Trajectory

The ETF's growth trajectory depends on its ability to attract assets and deliver competitive returns. Changes to strategy and holdings are determined by active management.

Competitive Edge

MXGU's competitive edge lies in its active management and the experience of the sub-advisor, seeking alpha through strategic asset allocation and security selection. It differentiates itself from passive index funds by dynamically adjusting its portfolio based on market conditions. The fund targets both growth and income, appealing to investors seeking a blend of these investment objectives. However, active management carries the risk of underperformance.

Volatility

Volatility depends on the composition of the ETF. Actively managed volatility may be above or below relevant benchmarks.

Market Risk

Market risk depends on the assets within the ETF. Equity holdings are subject to market fluctuations, while fixed income may be sensitive to interest rate changes.

Ideal Investor Profile

The ideal investor is someone seeking a blend of growth and income and is comfortable with active management and a higher expense ratio.

Market Risk

Suitable for long-term investors seeking a balanced return profile, but not ideal for active traders due to liquidity concerns and higher expense ratio.

REX MSTR Growth & Income ETF (MXGU) is an actively managed ETF that aims to deliver long-term capital appreciation and current income. It invests primarily in dividend-paying equities and income-generating securities. Its active management approach differentiates it from passive ETFs, potentially allowing for tactical adjustments based on market conditions. However, its higher expense ratio and lower liquidity compared to passively managed, higher AUM funds are factors investors should consider. Investors looking for a balance of growth and income, willing to pay for active management, might find this ETF suitable.

Data Sources:

• REX Shares Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence before making any investment decisions.