OTAX - ETF AI Analysis
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Optimal Tax Managed Equity ETF (OTAX)
OTAX, the Optimal Tax Managed Equity ETF, has a solid overall rating driven largely by strong, high-quality holdings like Microsoft, Apple, Nvidia, TSMC, and Broadcom, all benefiting from leadership in AI, cloud, and advanced technologies with robust financial performance. The presence of weaker names like Snowflake, which faces profitability and valuation challenges and some bearish technical signals, slightly weighs on the fund’s appeal. A key risk is the ETF’s heavy exposure to technology and AI-related companies, which can increase volatility if that sector faces a downturn.
OTAX vs. SPDR S&P 500 ETF (SPY)
- AUM
- 75.80M
- Region
- North America
- Expense Ratio
- 0.58%
- Beta
- 1.25
- Issuer
- Optimal
- Inception Date
- Aug 25, 2026
- Dividend Yield
- N/A
- Asset Class
- Equity
- Index Tracked
- No Underlying Index
OTAX Summary
Optimal Tax Managed Equity ETF (OTAX) is an actively managed fund that invests across the whole U.S. stock market, including large, mid, and small companies. It doesn’t track a fixed index, but instead focuses on owning high‑quality businesses while trying to reduce investors’ tax bills over time. The fund is heavily invested in technology and other major sectors, and holds well‑known companies like Apple, Microsoft, Nvidia, and Amazon. Investors might consider OTAX for broad diversification and tax‑efficient long‑term growth. A key risk is that it can still rise or fall with the overall stock market, especially tech stocks.
How much will it cost me?
This ETF has an expense ratio of 0.58%, which means you’ll pay about $5.80 per year for every $1,000 you invest. That’s higher than the average low-cost index ETF because OTAX is actively managed and uses a specialized, tax-focused strategy that requires more research and trading.
What would affect this ETF?
Because OTAX is heavily invested in U.S. technology and other growth-oriented sectors, it could benefit from ongoing innovation, strong corporate earnings, and a stable U.S. economy, while its tax-managed approach may help investors keep more of their returns after taxes. On the downside, rising interest rates, market downturns that hit large tech names like Nvidia, Apple, and Microsoft, or changes to U.S. tax rules and regulations could reduce performance and limit the effectiveness of its tax-focused strategy.
OTAX Top 10 Holdings
OTAX is leaning heavily into U.S. Big Tech and AI, with Nvidia, Apple, and Microsoft doing most of the heavy lifting. Nvidia and Microsoft have been rising on the back of AI and cloud momentum, while Apple’s steady climb adds a more mature tech anchor. TSMC and Snowflake bring a global and data-focused flavor, both showing strong but sometimes mixed trends that can add volatility. Broadcom, by contrast, has been lagging lately, slightly dragging on returns. Overall, the fund’s story is a tech‑centric, U.S.-led bet on the digital and AI economy.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 NVDA | Nvidia | 5.08% | $3.85M | $4.93T | 0.86% | 76Outperform |
 AAPL | Apple | 5.03% | $3.81M | $5.03T | 26.98% | 79Outperform |
 MSFT | Microsoft | 4.08% | $3.09M | $3.88T | -0.73% | 79Outperform |
 TSM | TSMC | 2.98% | $2.26M | $1.88T | 33.94% | 81Outperform |
 AMZN | Amazon | 2.50% | $1.89M | $2.59T | 7.85% | 71Outperform |
 SNOW | Snowflake | 2.43% | $1.84M | $107.99B | 12.87% | 54Neutral |
 PANW | Palo Alto Networks | 2.39% | $1.81M | $299.56B | 67.62% | 73Outperform |
 AVGO | Broadcom | 2.05% | $1.56M | $1.56T | -13.38% | 76Outperform |
OTAX Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For OTAX, the sentiment is Negative. The current price of 48.59 is below the 20-day moving average (MA) of 49.87, compared to the 50-day MA of , and compared to the 200-day MA of , indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 37.06 is Neutral, neither overbought nor oversold. The STOCH value of 58.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OTAX.
OTAX Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| OTAX | $48.59 | $53.00(9.08% Upside) | $75.80M | 0.58% | 60Neutral |
 STNC | $37.32 | $42.62(14.20% Upside) | $93.14M | 0.85% | 68Neutral |
 SOVF | $31.63 | $37.50(18.56% Upside) | $90.20M | 0.75% | 70Neutral |
 PFOE | $21.63 | $29.13(34.68% Upside) | $88.71M | 0.59% | 75Outperform |
 VAMO | $36.31 | $42.55(17.18% Upside) | $87.92M | 0.65% | 63Neutral |
 YALL | $42.68 | $53.35(24.98% Upside) | $79.03M | 0.65% | 67Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| OTAX | Optimal Tax Managed Equity ETF | 48.59 | -1.46 | -2.92% | |
| STNC | Stance Equity ESG Large Cap Core ETF | 37.32 | 5.00 | 15.49% | |
| SOVF | Sovereign's Capital Flourish Fund | 31.63 | 3.21 | 11.29% | |
| PFOE | Pathfinder Focused Opportunities ETF | 21.63 | -3.23 | -13.00% | |
| VAMO | Cambria Value & Momentum ETF | 36.31 | 3.71 | 11.37% | |
| YALL | God Bless America ETF | 42.68 | -1.91 | -4.29% |
This 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.