Strategy Shares - Day Hagan/Ned Davis Research Smart Sector Fixed Income ETF (SSFI)

Overview

The Strategy Shares - Day Hagan/Ned Davis Research Smart Sector Fixed Income ETF (FNDD) is an actively managed ETF that seeks to provide total return by allocating its assets among various fixed income sectors based on a proprietary quantitative methodology. It aims to outperform a broad fixed income market benchmark by dynamically adjusting sector allocations based on relative strength and momentum signals.

Reputation and Reliability

Strategy Shares is a smaller ETF provider known for its tactical and rules-based strategies. Their reputation is still building, but they are known for innovative approaches.

Management Expertise

The management team at Strategy Shares collaborates with Day Hagan Asset Management and Ned Davis Research, both firms with significant expertise in fixed income and quantitative analysis.

Goal

To achieve total return by strategically allocating investments across various fixed income sectors.

Investment Approach and Strategy

Strategy: Actively managed ETF that utilizes a quantitative, rules-based approach to allocate assets among various fixed income sectors based on relative strength and momentum.

Composition The ETF primarily holds investments in other fixed income ETFs, representing different sectors of the bond market (e.g., corporate bonds, government bonds, mortgage-backed securities).

Market Share: Due to limited data availability, FNDD's exact market share is not precisely known, but it is likely a small share of the overall fixed income ETF market.

Total Net Assets (AUM): 34729348

Key Competitors

• iShares Core U.S. Aggregate Bond ETF (AGG)
• Vanguard Total Bond Market ETF (BND)
• SPDR Portfolio Aggregate Bond ETF (SPAB)

Competitive Landscape

The fixed income ETF market is dominated by large, passively managed funds like AGG and BND. FNDD differentiates itself through its active, sector-rotation strategy. Its advantage lies in potentially outperforming the broad market, but disadvantages include higher expense ratios and reliance on the effectiveness of its quantitative model.

Historical Performance: Historical performance data is available from the fund's website and other financial data providers. Reviewing its performance over 1, 3, and 5-year periods is crucial.

Benchmark Comparison: Compare FNDD's performance to a broad fixed income index like the Bloomberg Barclays U.S. Aggregate Bond Index to assess its value-add.

Expense Ratio: 0.75

Average Trading Volume

FNDD's average daily trading volume is relatively low, which can potentially lead to wider bid-ask spreads.

Bid-Ask Spread

The bid-ask spread for FNDD can be wider compared to more liquid, passively managed fixed income ETFs.

Market Environment Factors

Economic indicators (interest rates, inflation), credit spreads, and sector-specific news influence FNDD's performance.

Growth Trajectory

FNDD's growth is dependent on its ability to attract assets by demonstrating consistent outperformance and the continued demand for actively managed fixed income strategies.

Competitive Edge

FNDD's competitive advantage lies in its active sector rotation strategy, driven by a quantitative model developed by Day Hagan/Ned Davis Research. This approach seeks to capitalize on relative strength and momentum signals within different fixed income sectors. This active management differentiates it from passive, broad market fixed income ETFs. However, this advantage is contingent on the model's continued efficacy.

Volatility

FNDD's volatility is influenced by the volatility of the underlying fixed income sectors it invests in and the effectiveness of its sector rotation strategy.

Market Risk

FNDD is subject to market risk associated with fixed income investments, including interest rate risk, credit risk, and inflation risk. The ETF's performance depends on the management team's ability to manage the aforementioned risks through careful sector rotation decisions.

Ideal Investor Profile

Investors seeking potential outperformance in the fixed income market through active management and sector rotation may find FNDD appealing.

Market Risk

FNDD is best suited for investors with a moderate risk tolerance who seek a more active approach to fixed income investing.

Strategy Shares - Day Hagan/Ned Davis Research Smart Sector Fixed Income ETF is an actively managed fund that uses a quantitative approach to rotate through fixed income sectors, potentially outperforming passive indexes. Its active nature may lead to higher expense ratios and varying performance relative to benchmarks. The ETF aims to generate total return through sector allocation but success depends on the effectiveness of the management team's strategies. Investors should carefully consider their risk tolerance and investment goals before investing in FNDD.

Data Sources:

• Strategy Shares Website
• ETF.com
• Morningstar
• FactSet

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence before making any investment decisions. Market share data is estimated based on available AUM and may not be precise. Past performance is not indicative of future results.