(FTWO) EA Series Trust - Ratings and Ratios

The EA Series Trust, trading as FTWO on NYSE ARCA, is an exchange-traded fund (ETF) that focuses on tracking the performance of an index designed by Bloomberg to measure the performance of companies involved in national security and natural resource security. This index comprises a mix of large- and mid-capitalization companies, providing a diversified exposure within the specified sectors.

The funds investment strategy is centered around replicating the indexs performance, with a significant portion of its assets allocated to the natural resources and security sectors. Specifically, it is mandated to invest at least 80% of its net assets, plus any borrowings for investment purposes, in these sectors under normal market conditions. Being a non-diversified fund, FTWO may have a higher concentration in specific holdings, which can lead to higher volatility compared to diversified funds.

From a technical standpoint, the ETF has shown resilience with its current price hovering near its 52-week high. The last price is $33.18, with short-term, medium-term, and long-term SMAs at $32.05, $30.85, and $30.43, respectively, indicating a positive trend as the short-term SMA is above both the medium and long-term SMAs. The Average True Range (ATR) is 0.55, translating to a volatility of 1.66%, which is relatively moderate. Given these technical indicators, theres a potential for the ETF to continue its upward trend, especially if it breaks through its 52-week high of $33.49.

Fundamentally, the Assets Under Management (AUM) stand at $27.36 million USD, indicating a relatively small but focused investment vehicle. The size of the fund can be both a constraint and an opportunity; it may limit its diversification but also allows for more agile investment strategies.

Forecasting the future performance of FTWO involves analyzing both its technical and fundamental data. Given its current price is near its 52-week high and above its short, medium, and long-term SMAs, theres a technical indication of a bullish trend. If the ETF can sustain its position above $33.18 and potentially break through the $33.49 resistance, it could attract more investors, potentially driving the price higher. However, the relatively small AUM might pose liquidity risks and potentially higher volatility. Therefore, a cautious optimistic forecast is warranted, with a potential target price above $35 in the short term, contingent on maintaining the current trend and improving liquidity.