Day Hagan/Ned Davis Research Smart Sector International ETF (SSXU)

Overview

The Day Hagan/Ned Davis Research Smart Sector International ETF seeks to provide long-term capital appreciation by investing in a diversified portfolio of international equities. It aims to capitalize on market inefficiencies and sector-specific trends through a quantitative and research-driven approach developed by Ned Davis Research.

Reputation and Reliability

Day Hagan Asset Management is a registered investment advisor known for its quantitative strategies. Ned Davis Research (NDR) is a well-respected independent investment research firm with a long history of providing insights and data-driven analysis to institutional investors.

Management Expertise

The ETF is managed by Day Hagan Asset Management, which leverages the research and insights from Ned Davis Research. This collaboration suggests a blend of active management principles with deep quantitative analysis.

Goal

The primary investment goal is long-term capital appreciation by investing in international equity markets.

Investment Approach and Strategy

Strategy: The ETF employs a dynamic, quantitatively driven strategy that aims to identify and invest in international equity sectors that exhibit favorable characteristics based on Ned Davis Research's proprietary models. It's not a passive index tracker.

Composition The ETF holds primarily international equities across various sectors. The specific composition is subject to change based on the quantitative signals generated by the research methodology.

Market Share: Data on specific market share for this niche ETF is not readily available publicly. Its focus on a smart sector international strategy likely places it in a specialized segment.

Total Net Assets (AUM): As of the latest available data, the Total Net Assets (AUM) for the ETF Day Hagan/Ned Davis Research Smart Sector International ETF is approximately $24.7 million. (Data as of December 31, 2023)

Key Competitors

• iShares MSCI EAFE ETF (EFA)
• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)

Competitive Landscape

The international equity ETF market is highly competitive, dominated by large-cap ETFs tracking broad market indices. DGNS differentiates itself through its active sector rotation strategy based on proprietary research, aiming to outperform passive benchmarks. Its smaller AUM and niche strategy may pose challenges in terms of liquidity and broad market recognition compared to its larger, more established competitors.

Historical Performance: Historical performance data for DGNS indicates variable returns, reflecting its active management and sector rotation strategy. Specific year-over-year returns can fluctuate significantly based on market conditions and the effectiveness of the sector calls.

Benchmark Comparison: The ETF's performance is typically benchmarked against broad international equity indices. Its objective is to outperform these benchmarks through its smart sector approach.

Expense Ratio: The expense ratio for the Day Hagan/Ned Davis Research Smart Sector International ETF is 0.75%.

Average Trading Volume

The average trading volume for this ETF is relatively low, which can impact the ease and cost of executing trades.

Bid-Ask Spread

The bid-ask spread for this ETF is typically wider than for larger, more liquid ETFs, indicating a higher cost to enter and exit positions.

Market Environment Factors

The ETF is influenced by global economic growth, geopolitical events, currency fluctuations, and investor sentiment towards international markets and specific sectors. Changes in interest rates and inflation can also impact its performance.

Growth Trajectory

The growth trajectory of DGNS is dependent on the successful execution of its smart sector strategy and the overall performance of international equity markets. Changes in strategy are driven by Ned Davis Research's ongoing quantitative analysis.

Competitive Edge

The ETF's competitive edge lies in its proprietary, research-driven sector rotation methodology developed by Ned Davis Research. This quantitative approach aims to identify undervalued or high-growth international sectors before they are widely recognized, potentially leading to alpha generation. Its focus on international markets also offers diversification benefits.

Volatility

The ETF's volatility can be higher than broad-based international equity ETFs due to its concentrated sector bets and active management. Sector-specific downturns can significantly impact its performance.

Market Risk

Market risks include geopolitical instability, currency exchange rate fluctuations, economic downturns in international regions, and changes in regulatory environments. Sector-specific risks related to the industries it invests in are also present.

Ideal Investor Profile

The ideal investor for this ETF is one seeking international equity exposure with an active, research-driven approach to sector allocation. They should have a higher risk tolerance and understand that active management can lead to greater volatility.

Market Risk

This ETF is more suited for active traders or long-term investors who believe in the efficacy of quantitative sector rotation strategies and are comfortable with the potential for higher volatility and less predictability compared to passive index funds.

The Day Hagan/Ned Davis Research Smart Sector International ETF is an actively managed fund focused on international equity markets, utilizing a quantitative sector rotation strategy. It aims for long-term capital appreciation by identifying promising sectors based on Ned Davis Research's insights. While offering diversification and a unique approach, it comes with higher expense ratios and potential for greater volatility compared to passive ETFs. Investors should have a higher risk tolerance and a belief in its specialized methodology.

Data Sources:

• Day Hagan Asset Management Official Website
• Ned Davis Research Website
• ETF Provider Filings (e.g., SEC)

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making investment decisions.