SMI 3Fourteen REAL Asset Allocation ETF (RAA)

Overview

The SMI 3Fourteen REAL Asset Allocation ETF is designed to provide investors with exposure to a diversified portfolio of real assets, including real estate, commodities, and infrastructure. It aims to provide inflation protection and long-term capital appreciation.

Reputation and Reliability

3Fourteen Research is a newer entrant in the ETF market. Their reputation is still developing, and their reliability is being assessed based on fund performance and adherence to investment objectives.

Management Expertise

Information regarding the specific management team and their expertise is limited and requires further research.

Goal

The primary investment goal is to seek total return by allocating assets across various real asset classes.

Investment Approach and Strategy

Strategy: The ETF employs an active management strategy to allocate assets across real estate, commodities, infrastructure, and potentially other real asset classes. It does not track a specific index.

Composition The ETF holds a mix of ETFs and individual securities representing various real asset categories. The exact composition varies based on market conditions and the investment manager's outlook.

Market Share: Data is unavailable for pinpoint market share due to the unique strategy.

Total Net Assets (AUM): 6760000

Key Competitors

• Invesco DB Commodity Index Tracking Fund (DBC)
• iShares Cohen & Steers REIT ETF (ICF)
• InfraCap MLP ETF (AMZA)

Competitive Landscape

The competitive landscape is diverse, with numerous ETFs focusing on individual real asset classes. REAL differentiates itself through its active, multi-asset allocation strategy. Advantages may include tactical adjustments, but disadvantages may include higher fees and potential underperformance compared to passive alternatives.

Historical Performance: Historical performance data is limited due to the ETF's relatively short history. Further data is needed for adequate evaluation.

Benchmark Comparison: A suitable benchmark comparison is challenging due to the ETF's unique asset allocation strategy. A custom benchmark reflecting its target asset mix would be necessary.

Expense Ratio: 1.2

Average Trading Volume

The ETF's average trading volume is low, which can impact trade execution and pricing.

Bid-Ask Spread

The bid-ask spread can be relatively wide due to lower trading volume, potentially increasing trading costs.

Market Environment Factors

Economic indicators such as inflation, interest rates, and GDP growth, as well as sector-specific growth prospects for real estate, commodities, and infrastructure, influence the ETF's performance.

Growth Trajectory

The growth trajectory depends on the ETF's ability to effectively allocate assets across real asset classes and capitalize on market opportunities. Changes in strategy and holdings should be monitored.

Competitive Edge

REAL differentiates itself through active management and a multi-asset approach to real asset allocation. The fund offers exposure to a diversified portfolio that can potentially adapt to changing market conditions. It aims to provide inflation protection and long-term capital appreciation. However, the success hinges on the investment manager's skill and strategy execution. Ultimately, its competitive advantage is its allocation abilities across different real asset categories.

Volatility

The ETF's volatility is influenced by the volatility of its underlying asset classes, including real estate, commodities, and infrastructure. Expect the volatility to be moderate to high.

Market Risk

Specific risks include commodity price fluctuations, interest rate sensitivity for real estate, and regulatory changes impacting infrastructure. Further, the value may fluctuate based on the investment manager's decision-making process.

Ideal Investor Profile

The ideal investor is seeking inflation protection, diversification benefits, and long-term capital appreciation through exposure to real assets. They should be comfortable with active management and willing to accept the associated risks and fees.

Market Risk

The ETF may be suitable for long-term investors seeking diversification and inflation hedging, but it is less appropriate for active traders or passive index followers due to its active management and higher expense ratio.

The SMI 3Fourteen REAL Asset Allocation ETF provides exposure to a diversified portfolio of real assets through active management. Its goal is to provide inflation protection and capital appreciation, but its performance depends on the investment manager's skill in allocating assets. Due to its higher expense ratio and active strategy, it is best suited for long-term investors. Limited trading volume and a relatively new track record are key considerations for potential investors.

Data Sources:

• 3Fourteen Research Website
• ETF.com
• Bloomberg
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market data is subject to change.