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ADDS - ETF AI Analysis

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ADDS

Hedgeye Index Adds ETF (ADDS)

Rating:58Neutral
Price Target:
ADDS, the Hedgeye Index Adds ETF, has a solid but not outstanding overall rating, reflecting a mix of strong growth stories and some valuation and risk concerns across its holdings. Higher-conviction positions like TechnipFMC (FTI), ATI, and Carpenter Technology (CRS) support the fund’s quality through robust financial performance, positive earnings calls, and generally favorable technical trends. However, names like Bloom Energy (BE) and MACOM Technology Solutions (MTSI) introduce risks tied to high leverage, unprofitability, and valuation pressures, and the fund’s focus on a relatively small set of mid-sized growth-oriented companies can increase volatility.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered a positive return so far this year, showing that its strategy has recently been working for investors.
Multiple Strong-Performing Holdings
Several of the top positions, including companies in technology and industrials, have shown strong gains, helping drive the fund’s overall results.
Broad Sector Diversification
Holdings spread across industries like industrials, technology, health care, energy, and consumer sectors help reduce the impact if any one area of the market struggles.
Negative Factors
High Expense Ratio
The fund’s relatively high fee means more of the investment return is used to cover costs instead of going to investors.
Heavy U.S. Concentration
With almost all assets invested in U.S. companies, the ETF offers little geographic diversification and is highly tied to the U.S. economy.
Large Weight in a Weak Top Holding
The biggest position in the fund has recently shown weak performance, which can drag on overall returns because it makes up a significant share of the portfolio.

ADDS vs. SPDR S&P 500 ETF (SPY)

ADDS Summary

Hedgeye Index Adds ETF (ADDS) is an actively managed U.S. stock fund that tries to benefit when companies are added to big indexes like the S&P or Russell. Instead of following a standard index, it picks a small group of U.S. companies that its models think are likely to be included in those indexes soon. The fund holds names such as Twilio and Illumina, with a lot of exposure to industrial and technology companies. Investors might consider ADDS for potential growth and as a complement to a core stock portfolio. However, because it is concentrated and actively managed, its price can be more volatile and may move sharply up or down.
How much will it cost me?This ETF has an expense ratio of 0.70%, which means you’ll pay about $7 per year for every $1,000 you invest. That’s higher than the average stock ETF because ADDS is actively managed and uses a specialized strategy to try to beat the market, which typically costs more than simple index-tracking funds.
What would affect this ETF?This ETF could benefit if U.S. stock markets stay healthy, index providers keep adding fast-growing industrial and technology companies, and investor interest in event-driven strategies remains strong, which would support gains in names like Twilio, nVent Electric, and other concentrated holdings. On the other hand, a weaker U.S. economy, tighter financial conditions, or changes in index rules could reduce index additions or hurt industrial, energy, and tech stocks, while the fund’s narrow, active approach and heavy exposure to a few positions may increase the impact of company-specific setbacks.

ADDS Top 10 Holdings

ADDS is leaning heavily into U.S. industrial and tech names, with a clear tilt toward niche growth stories rather than household giants. nVent Electric, Carpenter Technology, ATI, and Sterling Infrastructure have been the real workhorses, steadily climbing on strong earnings and upbeat outlooks in industrial and infrastructure themes. Bloom Energy has been a high‑octane winner, adding extra spark to returns despite its risks. On the flip side, the sizable SpaceX position has been lagging, acting as a bit of a brake on an otherwise strong, domestically focused lineup.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
SpaceX18.54%$1.16M$2.13T
Twilio10.45%$654.21K$31.73B73.58%
70
Neutral
nVent Electric7.85%$491.38K$25.37B106.44%
76
Outperform
Bloom Energy6.74%$421.63K$83.93B1009.34%
62
Neutral
Carpenter Technology5.46%$341.83K$30.77B114.31%
75
Outperform
TechnipFMC5.39%$337.44K$26.82B92.78%
80
Outperform
Illumina4.80%$300.63K$29.40B93.17%
71
Outperform
ATI4.59%$286.94K$26.21B108.65%
78
Outperform
Sterling Infrastructure3.43%$214.42K$22.01B197.06%
71
Outperform
Curtiss-Wright3.21%$200.57K$29.29B59.29%
74
Outperform

ADDS Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
100DMA
200DMA
Market Momentum
MACD
-0.09
Positive
RSI
49.67
Neutral
STOCH
36.15
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ADDS, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 26.01, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 36.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADDS.

ADDS Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$6.26M0.70%
58
Neutral
$137.58M0.85%
74
Outperform
$96.79M0.89%
72
Outperform
$96.27M0.75%
68
Neutral
$91.70M0.65%
66
Neutral
$86.31M0.52%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ADDS
Hedgeye Index Adds ETF
25.61
0.50
1.99%
STNC
Stance Equity ESG Large Cap Core ETF
BAMD
Brookstone Dividend Stock ETF
SOVF
Sovereign's Capital Flourish Fund
YALL
God Bless America ETF
RFDA
RiverFront Dynamic US Dividend Advantage ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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