Two Roads Shared Trust - LeaderShares Equity Skew ETF (SQEW)

Overview

The LeaderShares Equity Skew ETF (SQEW) is an actively managed ETF seeking long-term capital appreciation by employing a systematic option strategy that aims to profit from relative value differences between call and put options on the S&P 500 Index.

Reputation and Reliability

Two Roads Shared Trust is a relatively newer entrant in the ETF market; reliability can only be judged over time based on consistent strategy implementation and risk management.

Management Expertise

The management team's expertise lies in quantitative investment strategies and options trading. Their ability to navigate complex market dynamics will greatly influence the ETF's success.

Goal

To achieve long-term capital appreciation by actively managing a portfolio of options contracts on the S&P 500 Index.

Investment Approach and Strategy

Strategy: The ETF employs a systematic option strategy, primarily focusing on selling call options and buying put options on the S&P 500, aiming to capitalize on perceived skewness in the implied volatility curve.

Composition The fund's composition primarily involves options contracts related to the S&P 500 index; actual stock holdings would be minimal, if any.

Market Share: Data not readily available.

Total Net Assets (AUM):

Key Competitors

• Defined Risk ETF (DVOL)
• Simplify Volatility Premium ETF (SVOL)
• YieldMax SPY Option Income Strategy ETF (SPYX)

Competitive Landscape

The volatility ETF market is competitive. SQEW differentiates itself through its specific equity skew strategy; advantages include potential profit from predictable volatility patterns, but disadvantages could include underperformance during rapid market rallies where call options sold would limit upside.

Historical Performance: Historical financial performance data for SQEW is required for performance review.

Benchmark Comparison: Needs performance data to compare the ETFu2019s performance to relevant benchmarks.

Expense Ratio:

Average Trading Volume

Due to limited information, it is hard to assess SQEW's liquidity based on its average trading volume.

Bid-Ask Spread

Due to limited information, it is hard to determine the cost of trading SQEW based on its bid-ask spread.

Market Environment Factors

Economic indicators, options market volatility, and general market sentiment will influence SQEW; low volatility periods may compress option premiums, while heightened volatility can increase them.

Growth Trajectory

The growth trajectory of SQEW depends on successful strategy execution and investor adoption of the skewness-based approach; consistent performance will be key for attracting assets.

Competitive Edge

SQEW differentiates itself through its strategic approach to profiting from equity skew. This is where implied volatility for out-of-the-money put options is generally higher than out-of-the-money call options. The approach of this ETF can generate income by systematically selling call options and buying put options on the S&P 500 Index. A key competitive advantage of this ETF is to provide a less correlated return stream to traditional asset classes. The advantage of a niche strategy can be limited by strategy implementation costs and complexity.

Volatility

SQEW's volatility will depend on the dynamics of the options market and the effectiveness of its skewness strategy; periods of rapid market changes will likely result in higher volatility.

Market Risk

Risks include changes in market volatility, incorrect assumptions about skewness, and the potential for losses if options positions are mismanaged or mispriced.

Ideal Investor Profile

SQEW might be suitable for sophisticated investors seeking alternative income strategies, those with an understanding of options trading, and those looking to hedge against market downturns.

Market Risk

SQEW may be more suited for active traders or investors seeking to generate income through options-based strategies, rather than passive index followers or long-term buy-and-hold investors.

The LeaderShares Equity Skew ETF aims to capitalize on the equity skew, aiming for capital appreciation with an actively managed options strategy focused on the S&P 500. Its success depends on the effective execution of its skewness-based strategy and the options marketu2019s behavior. Investors must understand the complexities and risks associated with options trading, as the fund's performance will be dependent on option premiums. It differentiates from traditional ETFs with its niche strategy and actively managed design; success of this is highly dependent on execution of the strategy. This positions it as a tactical tool for sophisticated investors with an understanding of options markets.

Data Sources:

• ETF provider's website
• Financial news sources
• Investment analysis websites

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and after consulting with a qualified financial advisor.