(HRTS) Tema Cardiovascular - Ratings and Ratios

The Tema Cardiovascular and Metabolic ETF (NASDAQ:HRTS) is an actively managed exchange-traded fund that focuses on investing in publicly traded companies that generate a significant portion of their revenue from products or services related to GLP-1, cardiovascular diseases, and metabolic diseases, as per the CDCs definitions. This targeted investment approach aims to capitalize on the growing demand for treatments in these therapeutic areas.

The funds investment strategy involves allocating at least 80% of its net assets, including borrowings for investment purposes, to companies that derive at least 50% of their revenues from the specified areas. The portfolio is expected to comprise between 15 and 100 companies, indicating a relatively concentrated investment approach. As a non-diversified fund, HRTS is more susceptible to volatility and potential losses if the underlying companies experience significant declines.

Given the current market conditions and the funds characteristics, we can analyze the technical data to identify potential trends. The last price of $27.76 is below both the 20-day and 50-day simple moving averages (SMA20: $28.02, SMA50: $28.44), indicating a short-term downtrend. However, the average true range (ATR) of 0.66, representing a 2.38% daily volatility, suggests that the fund is not excessively volatile. Considering the 52-week high and low ($35.38 and $26.25, respectively), the current price is relatively near the lower end of the range, potentially indicating a buying opportunity.

By combining the technical and fundamental data, we can forecast the funds potential performance. With an AUM of $55.29M USD, HRTS has a relatively small asset base, which may impact its liquidity and ability to attract larger investors. However, its focused investment strategy and relatively low volatility may appeal to investors seeking targeted exposure to the cardiovascular and metabolic diseases treatment space. Based on the current trends and data, a potential forecast for HRTS could be a gradual recovery towards the SMA20 and SMA50 levels, potentially reaching $28.50-$29.00 in the short term, assuming the underlying companies continue to perform well and the overall market sentiment remains positive.