Westwood Salient Enhanced Energy Income ETF (WEEI)

Overview

The Westwood Salient Enhanced Energy Income ETF (XOUT) seeks to provide a high level of current income and long-term capital appreciation by investing primarily in energy sector equities. It focuses on identifying and investing in companies that are likely to outperform their peers while avoiding companies that are likely to be disrupted or face significant challenges. XOUT dynamically adjusts its holdings based on a proprietary fundamental model.

Reputation and Reliability

Salient Capital is the issuer. Salient has a solid reputation for managing energy sector investments and employs a disciplined investment approach.

Management Expertise

The management team has extensive experience in energy sector analysis and portfolio management, leveraging proprietary models to identify promising investment opportunities and mitigate risks.

Goal

To provide a high level of current income and long-term capital appreciation.

Investment Approach and Strategy

Strategy: XOUT employs an active management strategy, utilizing a proprietary fundamental model to identify energy companies with the potential for outperformance.

Composition The ETF primarily holds equity securities of companies in the energy sector, including exploration and production, refining, and midstream companies.

Market Share: XOUT holds a modest market share within the broader energy ETF landscape.

Total Net Assets (AUM): 132600000

Key Competitors

• Energy Select Sector SPDR Fund (XLE)
• Vanguard Energy ETF (VDE)
• iShares U.S. Energy ETF (IYE)

Competitive Landscape

The energy ETF sector is highly competitive, dominated by large, passively managed funds like XLE and VDE. XOUT differentiates itself through its active management approach and focus on identifying companies positioned for outperformance. XOUT's active strategy offers the potential for higher returns but also carries higher fees compared to passively managed competitors.

Historical Performance: Historical performance data should be sourced from financial data providers. Return data will vary with time. Example: 1-Year Return: 10.2%, 3-Year Return: 8.5%, 5-Year Return: 6.1%

Benchmark Comparison: Benchmark comparison would require specific performance data against benchmarks such as the S&P 500 Energy Sector Index.

Expense Ratio: 0.69

Average Trading Volume

XOUT exhibits moderate liquidity, with an average daily trading volume that allows for relatively easy entry and exit for most investors.

Bid-Ask Spread

The bid-ask spread for XOUT is generally tight, indicating efficient trading and lower transaction costs.

Market Environment Factors

XOUT's performance is heavily influenced by factors such as global oil prices, geopolitical events, and the overall health of the energy sector. Regulatory changes and technological advancements in renewable energy also play a role.

Growth Trajectory

XOUT's growth trajectory depends on its ability to consistently outperform its benchmark through active stock selection. Changes to its investment strategy and holdings are driven by its proprietary fundamental model.

Competitive Edge

XOUT's competitive advantage lies in its active management approach and proprietary fundamental model, which aims to identify undervalued energy companies with strong growth potential. This approach allows XOUT to potentially outperform passively managed energy ETFs. The fund's focus on avoiding companies facing disruption further enhances its potential for long-term success. Salient's experience in the energy sector and the management team's expertise contribute to XOUT's unique positioning.

Volatility

XOUT's volatility is expected to be higher than the broader market due to its focus on the energy sector, which is inherently volatile.

Market Risk

XOUT is exposed to market risk associated with the energy sector, including fluctuations in oil and gas prices, regulatory changes, and technological advancements.

Ideal Investor Profile

XOUT is suitable for investors seeking income and long-term capital appreciation from the energy sector and who are comfortable with the higher risks associated with sector-specific investments and active management.

Market Risk

XOUT is best suited for long-term investors with a strategic allocation to the energy sector, but active traders might use it for shorter-term tactical exposure.

The Westwood Salient Enhanced Energy Income ETF (XOUT) is an actively managed fund that targets energy sector companies with high income and growth potential. Its competitive edge lies in its proprietary fundamental model that aims to outperform passive energy ETFs by avoiding companies facing disruption. While offering potential for higher returns, XOUT also carries higher fees and inherent sector-specific risks. It is most appropriate for investors seeking long-term energy sector exposure and comfortable with active management and moderate to high volatility.

Data Sources:

• etf.com
• morningstar.com
• salientpartners.com

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and after consulting with a qualified financial advisor. Market share data are estimates and may vary.