Fairlead Tactical Sector Fund (TACK)

Overview

The Fairlead Tactical Sector ETF (FTS) is an actively managed ETF that seeks capital appreciation by strategically allocating investments across various US equity sectors, adjusting its holdings based on technical analysis and relative strength indicators.

Reputation and Reliability

Fairlead Strategies is a research firm known for its technical analysis-based investment strategies. Their reliability is tied to the performance of their strategies over time.

Management Expertise

Katie Stockton, the founder of Fairlead Strategies, manages the ETF and has extensive experience in technical analysis and market forecasting.

Goal

The primary investment objective of FTS is capital appreciation.

Investment Approach and Strategy

Strategy: FTS employs an active management strategy using technical analysis to identify sectors with the most favorable momentum and relative strength.

Composition The ETF primarily holds shares of other sector ETFs, representing allocations to different segments of the US equity market based on their technical outlook.

Market Share: Limited market share due to its specialized tactical approach and relatively small AUM.

Total Net Assets (AUM): 19200000

Key Competitors

• SPDR S&P 500 ETF (SPY)
• Invesco QQQ Trust (QQQ)
• Vanguard Total Stock Market ETF (VTI)
• iShares Core S&P 500 ETF (IVV)

Competitive Landscape

The competitive landscape is dominated by large, passively managed ETFs. FTS differentiates itself through active, technically driven sector rotation, which can offer potential outperformance in specific market conditions but also carries higher risk and costs compared to passive strategies. Disadvantages include higher expense ratios and potential tracking error.

Historical Performance: Historical performance data needs to be retrieved from financial data providers to provide an accurate assessment. Data is not available here.

Benchmark Comparison: Benchmark comparison requires historical data to compare FTS performance to a relevant benchmark such as the S&P 500. Data is not available here.

Expense Ratio: 0.75

Average Trading Volume

The average trading volume for FTS is relatively low, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread may fluctuate based on trading volume, impacting the cost of trading.

Market Environment Factors

Economic indicators, sector-specific growth, interest rates, and market sentiment influence sector performance and impact the effectiveness of FTS's tactical sector allocation strategy.

Growth Trajectory

Growth trajectory depends on the fund's ability to successfully identify and capitalize on sector rotations based on technical signals. Any changes to holdings would be based on the model driving FTS.

Competitive Edge

FTS's competitive advantage lies in its active, technical analysis-driven sector rotation strategy managed by an experienced analyst. This offers the potential for outperformance during specific market cycles when technical patterns are reliable. It targets investors who want strategic sector exposure based on momentum. The active management provides a differentiated approach compared to passively managed sector ETFs.

Volatility

Volatility depends on the sector allocations and the overall market environment. Active management adds another layer of risk.

Market Risk

Market risk is associated with the underlying sector ETFs, which are subject to fluctuations in market conditions and economic factors.

Ideal Investor Profile

The ideal investor is one with a higher risk tolerance, seeking capital appreciation through tactical sector allocation and willing to pay a higher expense ratio for active management.

Market Risk

FTS is more suitable for active traders or investors who are comfortable with active management and its associated risks.

The Fairlead Tactical Sector ETF (FTS) is an actively managed ETF using technical analysis for sector rotation, aiming for capital appreciation. Its tactical approach distinguishes it from passive sector ETFs but comes with higher costs and risk. Ideal investors are those with higher risk tolerance seeking active sector management. FTS's success depends on the effectiveness of its technical analysis strategy and the skill of its management team. The ETF is designed for investors who are comfortable with potentially higher volatility in pursuit of outperformance.

Data Sources:

• Fairlead Strategies Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on your own research and risk tolerance.