(DVP) Roundhill Acquirers Deep - Ratings and Ratios

The Roundhill Acquirers Deep Value ETF (DVP) is designed to mirror the performance of the Acquirers Deep Value Index, a benchmark created by Acquirers Funds LLC in 2020. This index focuses on a curated selection of 20 stocks that are not only deeply undervalued but also exhibit strong fundamental characteristics, drawn from the largest 500 US-listed stocks that meet specific liquidity requirements.

The ETFs investment strategy involves allocating at least 80% of its total assets to the constituent securities of the index under normal market conditions. Being non-diversified, the fund may have a higher concentration risk compared to diversified funds, potentially leading to higher volatility.

From a technical analysis perspective, the current price of DVP is $31.24, indicating a potential buying opportunity given its proximity to the 52-week low of $26.83 and distance from the 52-week high of $37.47. The short-term moving averages (SMA20 at $30.71 and SMA50 at $30.22) suggest a recent uptrend, while the long-term SMA200 at $33.46 indicates that the ETF is currently trading below its long-term average, potentially signaling undervaluation. The Average True Range (ATR) of 0.54, or 1.72%, suggests moderate daily price volatility.

Considering the fundamental aspect, the Assets Under Management (AUM) stand at $23.18M USD, indicating a relatively small but focused investment vehicle. The small size could allow for more agile investment decisions but might also impact liquidity.

Forecasting the performance of DVP involves analyzing both its technical and fundamental data. Given its current undervaluation and the recent uptrend indicated by short-term moving averages, theres potential for a rebound. If the ETF continues to track the Acquirers Deep Value Index effectively, and assuming the indexs methodology continues to identify undervalued yet fundamentally strong stocks, DVP could see a rise towards its SMA200 at $33.46 or even beyond, towards its 52-week high of $37.47, in a strong market recovery scenario. However, the non-diversified nature and the specific focus on deep value stocks introduce risks, including potential volatility and the possibility that the identified undervaluation may not necessarily lead to immediate market recognition. Therefore, a cautious approach, monitoring both the technical indicators and the underlying fundamentals, is advisable.