(CNAO) CI Alternative North - Ratings and Ratios

The CI Alternative North American Opportunities Fund (ETF C$ Series) is a Canadian exchange-traded fund listed under the ticker symbol CNAO on the Toronto Stock Exchange (TO). It falls under the Alternative Equity Focused category, aiming to provide exposure to alternative equity strategies that diverge from traditional stock market investments. The fund is designed for investors seeking diversification beyond conventional equity markets, leveraging alternative approaches to capitalize on market inefficiencies and reduce correlation with broader equity indices.

From a technical standpoint, CNAO has shown a mixed trend. The last price of 30.17 CAD is below its 20-day (31.64) and 50-day (31.80) simple moving averages, indicating short-term weakness. However, it remains above its 200-day moving average of 28.90, suggesting the fund is in a longer-term uptrend. The Average True Range (ATR) of 0.27 reflects relatively low volatility, making it a less turbulent investment compared to higher-volatility assets. The average 20-day volume of 3,025 shares indicates limited trading activity, which may result in less liquidity for larger transactions.

Fundamentally, the fund manages assets under management (AUM) of 44.57 million CAD, positioning it as a smaller ETF in its category. This modest size allows for more agile investment decisions but may also limit its access to certain investment opportunities requiring larger capital commitments. The funds structure is designed to align with the performance of the Morningstar CAD O/N Cash GR CAD index, providing a benchmark for its alternative equity-focused strategy.

3-Month Forecast: Based on , CNAO is expected to face headwinds in the near term, as its price remains below key moving averages (SMA 20 and SMA 50). However, the low ATR of 0.27 suggests that volatility will remain contained, offering a relatively stable investment environment. If the funds price breaks above its SMA 50 (31.80), it could signal a bullish reversal, with potential upside toward the 32.50 level. Conversely, failure to reclaim its SMA 20 (31.64) may lead to further consolidation or a retest of the SMA 200 (28.90). From a perspective, the modest AUM of 44.57M CAD may limit rapid asset growth but could also allow for more targeted investment opportunities in alternative equity markets.