Investment Managers Series Trust II - AXS Sustainable Alpha ETF (NXTE)

Overview

The AXS Sustainable Alpha ETF (NXTV) seeks long-term capital appreciation by investing in companies with high ESG (Environmental, Social, and Governance) scores and strong financial metrics, using an actively managed approach to enhance returns while promoting sustainable practices.

Reputation and Reliability

AXS Investments is a relatively newer entrant to the ETF market but is becoming recognized for its innovative and thematic ETFs.

Management Expertise

The management team leverages expertise in active management and ESG investing to identify and select securities for the ETF.

Goal

To achieve long-term capital appreciation by investing in companies that meet specific ESG criteria and demonstrate strong financial performance.

Investment Approach and Strategy

Strategy: The ETF is actively managed and does not track a specific index. It focuses on identifying companies with high ESG ratings and strong financial metrics.

Composition The ETF holds a diversified portfolio of equities, primarily focusing on US companies. The allocation may shift based on the manager's assessment of ESG and financial performance factors.

Market Share: Data not readily available for this specific ETF due to its focused strategy and relatively recent launch.

Total Net Assets (AUM): 16748334.0

Key Competitors

• ESGV
• SUSL
• CRBN

Competitive Landscape

The sustainable investing ETF market is competitive, with larger funds dominating. NXTV differentiates itself through its active management and alpha-seeking strategy, but faces challenges in gaining market share against established passive ESG funds. Advantages include potential for outperformance and downside risk mitigation through active management. Disadvantages include higher expense ratios and potential for underperformance relative to passive benchmarks.

Historical Performance: Historical performance data is limited due to the ETF's relatively recent inception.

Benchmark Comparison: Performance should be compared to broad market indices and other ESG-focused ETFs to gauge effectiveness.

Expense Ratio: 0.55

Average Trading Volume

The average trading volume is relatively moderate, which can impact the ease of buying and selling shares.

Bid-Ask Spread

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

Market Environment Factors

Economic growth, interest rates, inflation, and regulatory changes can all affect NXTV. Increasing investor interest in ESG and sustainable investments will provide positive tailwinds. Global events can affect supply chain issues and investor sentiment.

Growth Trajectory

Growth is tied to broader adoption of ESG investing and ability to generate alpha through active management. Changes in holdings will reflect the manager's view of company sustainability and financial health.

Competitive Edge

The AXS Sustainable Alpha ETF's competitive advantage lies in its active management and focus on generating alpha through a combination of ESG factors and financial analysis. This approach allows the fund to potentially outperform passive ESG benchmarks by selecting companies with strong sustainability profiles and growth potential. The active management strategy may also offer better downside protection during market downturns. Its relatively small size allows for potentially nimbler investment decisions.

Volatility

Volatility is expected to be comparable to the broader equity market. Active management may help to mitigate downside risk but also introduces manager-specific risk.

Market Risk

The fund is subject to market risk, particularly related to fluctuations in equity prices. Specific sectors within the portfolio, such as technology, may exhibit higher volatility.

Ideal Investor Profile

The ideal investor is one seeking long-term capital appreciation through sustainable investments, willing to accept moderate risk, and comfortable with active management and its associated fees.

Market Risk

The ETF is more suitable for long-term investors who prioritize ESG factors and are looking for actively managed solutions rather than passive index tracking.

The AXS Sustainable Alpha ETF aims to deliver long-term growth by investing in companies with strong ESG profiles and financial performance. Its active management seeks to outperform passive ESG strategies, but this comes with a higher expense ratio. The fund is suitable for long-term investors interested in sustainable investing, and is comfortable with active management and moderate risk. However, the ETFu2019s performance is sensitive to broad equity market conditions and the success of the manager's stock-picking strategy.

Data Sources:

• AXS Investments, ETF.com, Yahoo Finance, Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a financial advisor before making any investment decisions. Market share data may not be exact and can vary based on data source.