Trust For Professional Managers (APMU)

ETF Trust for Professional Managers: An Overview

Profile

ETF Trust for Professional Managers (PROF) is an actively managed exchange-traded fund that invests primarily in equity securities of large-cap US companies with strong growth potential. The fund is managed by a team of experienced professionals who use a fundamental analysis approach to identify companies with attractive valuations and strong competitive advantages. PROF has an equity allocation of approximately 90% and a fixed-income allocation of approximately 10%.

Objective

The primary investment goal of PROF is to provide long-term capital growth by investing in a diversified portfolio of large-cap growth stocks.

Issuer

PROF is issued by Exchange Traded Concepts (ETC). ETC is an independent ETF sponsor that provides innovative and unique ETF solutions. The firm has a strong reputation in the industry and is known for its expertise in developing niche ETFs.

Market Share & Total Net Assets

PROF has a small market share in its sector and manages approximately $100 million in assets.

Competitive Advantages (Moat):

• Active Management: The ETF's active management approach allows portfolio managers to take advantage of market inefficiencies and invest in undervalued companies with high growth potential.
• Focus on Large-cap Growth: The ETF focuses on large-cap companies with stable businesses and attractive valuations, which can provide consistent growth over the long term.
• Experienced Management: PROF is managed by a team of seasoned professionals with a proven track record in the investment industry.

Historical Financial Performance:

PROF has been a volatile investment in recent years. The ETF has delivered positive returns in periods of strong economic growth but has suffered losses in market downturns.

Growth Trajectory:

The future growth of the ETF is contingent upon the performance of its underlying holdings and the broader market outlook. If PROF can continue to identify and invest in companies with robust growth potential, it could potentially outperform the broader market.

Liquidity:

PROF has a modest average daily trading volume. The bid-ask spread is also relatively wide, implying a somewhat illiquid investment.

Market Dynamics:

Several factors can influence PROF's market environment, including:

• Economic Conditions: Strong economic growth typically benefits large-cap stocks.
• Interest Rates: Rising interest rates can make fixed-income assets more attractive than equities, potentially hurting PROF's stock-focused portfolio.
• Technological Advancements: Innovation and disruption in technology can impact the performance of different sectors within large-cap growth.

Key Competitors:

• IWM (iShares Russell 2000 Growth ETF)
• VUG (Vanguard Growth ETF)
• SCHG (Schwab U.S. Large-Cap Growth ETF)

Expense Ratio:

PROF's expense ratio rests at 0.75%, making it slightly more expensive than some of its peers in the large-cap growth ETF sector.

Investment Approach & Strategy:

• The ETF aims to outperform the S&P 500 Growth Index on an absolute basis and does not explicitly track any specific benchmark.
• Its portfolio composition primarily consists of stocks from various large-cap sectors, including technology, healthcare, and industrials.

Key Points:

• PROF is an actively managed ETF focused on investing in large-cap growth stocks.
• The ETF offers the potential for long-term capital growth.
• PROF has experienced management and focuses on companies with competitive advantages.
• The ETF can be volatile and has a somewhat limited track record.

Risk Profile:

• Market Risk: PROF is exposed to market fluctuations and general economic risks.
• Sector Risk: Its focus on large-cap growth stocks implies heightened sensitivity to specific economic sectors.
• Company-Specific Risk: PROF's holdings in specific companies make it prone to individual company risks affecting those companies.

Ideal Investor Profile:

• Investors seeking long-term growth potential and comfortable with market fluctuations.
• Those who favor an actively managed approach and can tolerate sector-specific risk.

Fundamental Rating Based on AI

Rating: 6.5/10

PROF's strong management team and active approach are positive attributes. However, its limited track record, higher expense ratio, and sensitivity to market fluctuations lead to a moderate overall rating.

AI analysis reasoning: While the AI system acknowledges the positive aspects of the ETF, such as its active management and experienced team, it also weighs the limitations like the short track record, higher-than-average expense ratio, and potential for volatility. Overall, the system assigns a relatively moderate rating reflecting the positive attributes balanced against the limitations.

Resources & Disclaimers:

Sources:

• ETF Trust For Professional Managers Fact Sheet (ETFdb.com): https://etfdb.com/etf/PROF/
• ETC Website: https://etconcepts.com/

Disclaimer: This information is intended for educational purposes and should not be construed as financial advice