1. What is your overall view about this ETF?
2. AUM is about $46M...is that too small for the fund to have much promise?
3. With $46M, is it too risky to take a large position, or is there protection from how ETFs operate?
4. It is perplexing to me....the average volume shows at about 600 on one trading platform I use and about 1,000 on another, yet there are bids and asks in excess of 2,000; why would there be such large bid / ask when the volume is much lower?
5. The quoted fee is 0.40% but about 1/2 of the holdings are other Evolve ETFs; is the real cost of the fee more than the 0.40% quoted (do they stack)? Would it be less of a fee if one simply bought the other funds?
Sorry if some of these are dumb questions, I don't often invest in ETFs. Many thanks for your excellent service.
$46M is quite small for an ETF; however its holdings are very liquid and we would not see a problem in that regard. The main concern with small funds is that they need to be profitable for the managers. If not, they can just close. Unit holders get no vote. They do get their money back but often there is a chance to merge a closing ETF into another. But a closing can mess up one's investment planning, certainly. We would consider it an OK ETF. We are comfortable with its fees (0.30%), investment style, and holdings. 5-year return is 12.4%, good, but not great, for the category. We would not want a big position. Market makers can 'create' new units or 'cancel' existing units if demand/supply are imbalanced. We imagine the bids reflect market maker activity here. ETFs cannot charge fees on fees, so there is no double-charging here.