Day Hagan/Ned Davis Research Smart Sector ETF (SSUS)

Overview

The Day Hagan/Ned Davis Research Smart Sector ETF (DSS) is a U.S. equity ETF aiming for capital appreciation by investing in sectors showing relative strength based on Ned Davis Research's sector allocation model. The ETF dynamically allocates its assets among different sectors of the U.S. economy, guided by macroeconomic indicators and market trends.

Reputation and Reliability

Day Hagan Asset Management has a growing reputation for its rules-based investment strategies. Ned Davis Research provides a high level of independent research, and their collaboration helps to add credibility.

Management Expertise

The management team possesses expertise in quantitative analysis and sector rotation strategies.

Goal

The primary investment goal of DSS is to achieve long-term capital appreciation by strategically allocating assets to sectors with favorable relative strength characteristics.

Investment Approach and Strategy

Strategy: DSS uses a proprietary methodology developed by Ned Davis Research to identify sectors with the most attractive relative strength based on a variety of economic and market indicators, and then rebalances accordingly.

Composition The ETF's composition primarily consists of stocks within the sectors identified by the Ned Davis Research's model as having relative strength, with the portfolio being rebalanced periodically.

Market Share: DSS has a relatively small market share compared to broader sector ETFs.

Total Net Assets (AUM): 18000000

Key Competitors

• Select Sector SPDR Trust - Financial (XLF)
• Select Sector SPDR Trust - Technology (XLK)
• Select Sector SPDR Trust - Energy (XLE)
• Invesco QQQ Trust, Series 1 (QQQ)
• SPDR S&P 500 ETF Trust (SPY)

Competitive Landscape

The competitive landscape is dominated by large, well-established sector ETFs. DSS differentiates itself through its reliance on the Ned Davis Research's sector allocation model. However, DSS's smaller size and less extensive track record could be seen as disadvantages compared to larger competitors with higher trading volume and brand recognition.

Historical Performance: Historical performance data is not readily available due to the ETF's relatively new existence. Specific numbers would be placed here once available

Benchmark Comparison: Comparing DSS's performance to broader market benchmarks such as the S&P 500 or other sector-specific ETFs can help assess its effectiveness. Specific numbers would be placed here once available

Expense Ratio: 0.9

Average Trading Volume

DSS's liquidity is low, based on current assets, meaning it trades fewer shares compared to well-known sector ETFs.

Bid-Ask Spread

DSS's bid-ask spread can fluctuate, which may impact the cost of trading.

Market Environment Factors

Economic indicators, sector growth prospects, interest rates, and overall market sentiment significantly impact DSS's performance as sectors may respond differently to economic stimuli. The ongoing state of inflation can have an outsized impact on some sectors more than others.

Growth Trajectory

DSS's growth trajectory is influenced by the efficacy of the Ned Davis Research sector allocation model and the ETF's ability to attract investors seeking a dynamic sector rotation strategy. Shifts to strategy and holdings will be determined by NDR's model.

Competitive Edge

DSS's competitive edge stems from its collaboration with Ned Davis Research and the unique sector allocation model NDR uses. This model incorporates proprietary data and analysis to identify sectors with the potential for outperformance. By employing a data-driven approach rather than relying solely on traditional sector classifications, DSS aims to capture opportunities that might be overlooked by other sector ETFs. The active management and dynamic sector rotation strategy also provide potential for alpha generation that may not be found in passively-managed ETFs.

Volatility

DSS's historical volatility should be evaluated relative to its benchmark and other sector ETFs to understand the potential for price fluctuations.

Market Risk

DSS is subject to market risk, meaning that if the sectors in which it has allocated assets perform poorly, the ETF's value will decline. Further, the methodology used by NDR may not always accurately predict the best-performing sectors.

Ideal Investor Profile

The ideal investor profile for DSS includes those seeking capital appreciation through strategic sector allocation and who understand the risks associated with actively managed ETFs. Investors should have a moderate to high risk tolerance.

Market Risk

DSS may be suitable for both long-term investors seeking to enhance portfolio returns through dynamic sector allocation and active traders who use sector rotation strategies. It is likely not suitable for passive index followers.

Day Hagan/Ned Davis Research Smart Sector ETF (DSS) provides exposure to U.S. sectors identified by Ned Davis Research's sector allocation model as having relative strength. DSS is an actively-managed sector rotation fund that dynamically changes sector allocations, offering potential for outperformance but also exposing investors to higher fees and market risk. DSS differentiates itself through its collaboration with Ned Davis Research and its use of a unique sector allocation model based on economic indicators and market data. The fund's smaller size and relatively new existence may pose concerns for some investors. Investors should carefully consider their risk tolerance and investment objectives before investing in DSS.

Data Sources:

• ETF.com
• Morningstar.com
• Day Hagan Asset Management
• Ned Davis Research
• Company Filings

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Market conditions are subject to change.