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

Overview

The Day Hagan/Ned Davis Research Smart Sector International ETF (SSIF) is an actively managed ETF that aims to outperform the MSCI EAFE Index by strategically allocating assets to international equity sectors based on Ned Davis Research's proprietary sector rotation model. It focuses on developed markets outside the US.

Reputation and Reliability

Day Hagan Asset Management is a well-regarded firm with a focus on tactical asset allocation strategies. Ned Davis Research provides independent investment research and analysis.

Management Expertise

The ETF's management team combines Day Hagan's expertise in ETF management with Ned Davis Research's sector analysis and rotation methodologies.

Goal

To outperform the MSCI EAFE Index through active sector rotation within international developed markets.

Investment Approach and Strategy

Strategy: Actively managed, using a sector rotation model developed by Ned Davis Research.

Composition Primarily holds equities of companies located in developed international markets (ex-US). Sector allocation changes based on the sector rotation model.

Market Share: Insufficient data available to accurately assess SSIF's specific market share due to the niche nature of its strategy and reporting constraints on holdings.

Total Net Assets (AUM): 29943475.0

Key Competitors

• Vanguard FTSE Developed Markets ETF (VEA)
• iShares MSCI EAFE ETF (EFA)
• SPDR Portfolio Developed World ex-US ETF (SPDW)

Competitive Landscape

The international developed markets ETF space is dominated by passively managed, broad market ETFs like VEA and EFA. SSIF differentiates itself through its active sector rotation strategy. Advantages include potential for outperformance in specific market environments. Disadvantages include higher expense ratio and dependence on the accuracy of the sector rotation model.

Historical Performance: Historical performance data is limited due to the ETF's relatively recent inception. Performance will vary based on the effectiveness of sector rotation strategy and market conditions.

Benchmark Comparison: Performance should be compared against the MSCI EAFE Index, but outperformance is not guaranteed due to active management.

Expense Ratio: 0.79

Average Trading Volume

SSIF's average trading volume is relatively low, which can affect order execution and potential transaction costs.

Bid-Ask Spread

The bid-ask spread can be wider compared to more liquid ETFs, which may increase the cost of trading.

Market Environment Factors

Economic indicators in developed international markets, sector-specific growth prospects, and global market sentiment are key factors affecting SSIF's performance.

Growth Trajectory

SSIF's growth trajectory depends on its ability to attract assets by demonstrating consistent outperformance relative to its benchmark and effectively adapting to changing market conditions. Changes to sector weightings can occur.

Competitive Edge

SSIF's primary advantage is its active management approach, specifically the sector rotation model provided by Ned Davis Research, potentially enabling it to capitalize on emerging trends in international markets. This active strategy aims to deliver alpha by strategically allocating assets to sectors expected to outperform. The ETF's focus on sector rotation, rather than simple market capitalization weighting, differentiates it from many passive international ETFs. However, success hinges on the efficacy of the Ned Davis Research model.

Volatility

SSIF's volatility will depend on the specific sectors it invests in and the overall market volatility of international equities.

Market Risk

SSIF is subject to market risk associated with international equities, including currency fluctuations, political instability, and economic downturns in developed countries.

Ideal Investor Profile

Investors seeking active management and potential outperformance in international developed markets, willing to accept higher expense ratio and active management risk.

Market Risk

Best suited for investors with a moderate to long-term investment horizon who understand the risks and potential rewards of active management and sector rotation strategies.

The Day Hagan/Ned Davis Research Smart Sector International ETF (SSIF) offers exposure to international developed markets through an active sector rotation strategy driven by Ned Davis Research's model. Its potential for outperformance is balanced by a higher expense ratio and the inherent risks of active management. The ETF is suitable for investors seeking a tactical approach to international equities, willing to accept potentially higher volatility, and who believe in the sector rotation strategy's ability to generate alpha. SSIF is a relatively small ETF in a competitive landscape dominated by large, passively managed funds.

Data Sources:

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

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be based on individual circumstances and after consultation with a qualified financial advisor.