Spear Alpha ETF (SPRX)

Overview

The Spear Alpha ETF (SPRX) is an actively managed ETF that invests in companies involved in disruptive technologies and innovation. It aims for capital appreciation by focusing on high-growth sectors.

Reputation and Reliability

Spear Invest has a relatively short track record in the ETF market, focusing on innovation and disruptive technologies.

Management Expertise

The management team has expertise in technology and growth investing.

Goal

The primary investment goal of SPRX is long-term capital appreciation.

Investment Approach and Strategy

Strategy: SPRX is actively managed and does not track a specific index. It seeks to identify and invest in companies across various sectors that are leading innovation and experiencing rapid growth.

Composition The ETF primarily holds stocks of companies in the technology, consumer discretionary, healthcare, and industrial sectors.

Market Share: SPRX holds a small market share compared to established technology ETFs.

Total Net Assets (AUM): 14.43

Key Competitors

• ARK Innovation ETF (ARKK)
• Global X Autonomous & Electric Vehicles ETF (DRIV)
• ROBO Global Robotics & Automation Index ETF (ROBO)

Competitive Landscape

The ETF market focused on innovation is highly competitive, with several established players. SPRX aims to differentiate itself through active management and a focus on specific disruptive themes. Advantages may include agility in responding to market changes, while disadvantages could include higher expense ratios and reliance on the manager's stock-picking abilities.

Historical Performance: Historical performance data is difficult to summarize because of the ETF's short history. Performance can fluctuate significantly based on the performance of its underlying holdings.

Benchmark Comparison: A suitable benchmark would be the NASDAQ Composite or an index tracking disruptive innovation, however performance data is difficult to summarise because of the ETF's short history.

Expense Ratio: 0.75

Average Trading Volume

The average daily trading volume of SPRX is low compared to larger ETFs, which might affect the ease of buying or selling shares.

Bid-Ask Spread

The bid-ask spread for SPRX can be relatively wide, reflecting its lower trading volume and potentially increasing transaction costs.

Market Environment Factors

SPRX's performance is significantly influenced by factors such as interest rates, technological advancements, sector-specific growth, and overall investor sentiment towards growth stocks. Growth Trajectory depends on the success of the underlying companies that are part of the ETF.

Growth Trajectory

The growth trajectory of SPRX depends on the continued adoption of disruptive technologies and the successful execution of its active management strategy, with changes potentially occurring in sector allocation based on market conditions.

Competitive Edge

SPRX seeks to gain a competitive advantage through active management, allowing it to adjust its holdings based on market conditions and identify emerging opportunities. Its focus on disruptive technologies differentiates it from broad market ETFs. The active management strategy allows for a concentrated portfolio, potentially leading to higher returns if successful. However, this strategy also carries increased risk due to the manager's stock-picking abilities.

Volatility

SPRX is expected to exhibit high volatility due to its focus on growth stocks and disruptive technologies.

Market Risk

Specific risks include technology sector risk, innovation risk (companies failing to innovate), competition risk, and market fluctuations impacting growth stock valuations.

Ideal Investor Profile

The ideal investor for SPRX is someone with a high-risk tolerance seeking long-term capital appreciation and comfortable with the volatility associated with disruptive technologies.

Market Risk

SPRX is best suited for long-term investors willing to accept higher risk in exchange for potentially higher returns; it is less suitable for risk-averse investors or those seeking stable income.

Spear Alpha ETF (SPRX) is an actively managed fund targeting disruptive technologies and innovation. It is best for investors with a high-risk tolerance seeking capital appreciation, not stable income. The ETF's potential for high returns is coupled with risks related to active management and sector concentration. Its smaller size and focus on high-growth companies contribute to its volatile nature; a wider bid-ask spread and lower trading volumes add to transaction costs. Investors should carefully consider these factors and its short operating history when making investment decisions.

Data Sources:

• ETF.com
• Morningstar
• Spear Invest Website
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions and ETF performance can change rapidly. Consult with a qualified financial advisor before making any investment decisions.