SATO - ETF AI Analysis

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Invesco Alerian Galaxy Crypto Economy ETF (SATO)

Rating:48Neutral

Price Target:―

The Invesco Alerian Galaxy Crypto Economy ETF (SATO) has a mixed overall rating, reflecting both strengths and challenges among its holdings. Iris Energy stands out as a strong contributor due to its strategic AI cloud contract with Microsoft and promising revenue growth, although its high valuation metrics and cash flow management issues temper its impact. On the other hand, holdings like Bitdeer Technologies and Canaan weigh down the ETF’s rating due to persistent financial losses and unattractive valuations. A key risk factor for this ETF is its concentration in companies with significant financial challenges, which may affect its long-term stability.

Positive Factors

Strong Recent Performance

The ETF has shown solid gains over the past year-to-date, one-month, and three-month periods, indicating positive momentum.

Focus on Growth Sectors

The fund is heavily weighted in Financial and Technology sectors, which are known for their growth potential.

Global Diversification

While primarily focused on the U.S., the ETF includes exposure to international markets like Hong Kong, Canada, and Germany, providing some geographic diversification.

Negative Factors

High Expense Ratio

The ETF charges a relatively high expense ratio compared to many other funds, which could eat into investor returns over time.

Underperforming Holdings

Some top holdings, such as Canaan and eToro, have experienced negative year-to-date performance, which could weigh on overall returns.

Sector Concentration Risk

Nearly half of the fund is allocated to the Financial sector, making it vulnerable to downturns in this industry.

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

AUM10.78M

RegionGlobal

Expense Ratio0.60%

Beta1.97

IssuerInvesco

Inception DateOct 07, 2021

Dividend Yield15.01%

Asset ClassEquity

Index TrackedAlerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts and ETPs Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume3,722

30 Day Avg. Volume5,496

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

36.97

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering53

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

SATO Summary

The Invesco Alerian Galaxy Crypto Economy ETF (SATO) is an investment fund focused on the growing digital economy. It includes companies involved in blockchain technology, cryptocurrency mining, and financial services related to digital assets. Some of its top holdings are well-known names like Canaan and Cipher Mining. Investors might consider SATO if they are interested in the potential growth of the crypto and blockchain sectors, which are transforming global finance and technology. However, new investors should be aware that this ETF is heavily tied to the volatile cryptocurrency market, meaning its value can rise and fall significantly depending on market trends.

How much will it cost me?The Invesco Alerian Galaxy Crypto Economy ETF (SATO) has an expense ratio of 0.6%, which means you’ll pay $6 per year for every $1,000 invested. This is higher than average because it is actively managed and focuses on a niche sector like the digital economy, which requires specialized research and management.

What would affect this ETF?The Invesco Alerian Galaxy Crypto Economy ETF (SATO) could benefit from growing adoption of blockchain technology and cryptocurrencies, as well as increased interest in digital innovation globally. However, it may face challenges from regulatory changes in the crypto sector, fluctuating cryptocurrency prices, and potential economic downturns that could impact technology and financial sectors, which make up a significant portion of its holdings.

SATO Top 10 Holdings

The Invesco Alerian Galaxy Crypto Economy ETF (SATO) is deeply rooted in the digital economy, with a clear focus on blockchain and cryptocurrency-related companies. While names like Cipher Mining and Applied Digital Corporation are showing steady growth potential, thanks to strategic expansions and partnerships, others like Bitdeer Technologies and BTCS are dragging the fund with bearish momentum and profitability challenges. The ETF leans heavily into the technology and financial sectors, creating a concentrated bet on the crypto economy's future. With global exposure, SATO offers a bold play on innovation but faces mixed performance from its top holdings.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
CIFR	Cipher Mining	2.71%	$304.01K	$8.04B	203.73%	55 Neutral
BITF	Bitfarms	2.67%	$298.50K	$2.09B	61.86%	46 Neutral
WULF	TeraWulf Inc	2.64%	$296.10K	$6.49B	96.58%	54 Neutral
CLSK	Cleanspark	2.51%	$281.06K	$3.86B	5.23%	74 Outperform
HUT	Hut 8	2.49%	$278.60K	C$6.82B	59.36%	55 Neutral
BTDR	Bitdeer Technologies	2.40%	$269.17K	$3.12B	-6.03%	38 Underperform
HODL	Sol Strategies	2.38%	$266.62K	C$119.63M	-69.50%	65 Neutral
BTCS	BTCS	2.35%	$263.66K	$148.95M	-10.67%	47 Neutral
APLD	Applied Digital Corporation	2.34%	$262.06K	$7.55B	168.32%	45 Neutral
RIOT	Riot Platforms	2.31%	$259.18K	$6.00B	27.51%	68 Neutral

SATO Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

25.74

Negative

100DMA

23.58

Negative

200DMA

19.88

Positive

Market Momentum

MACD

-1.45

Positive

RSI

44.91

Neutral

STOCH

66.90

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SATO, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 23.12, equal to the 50-day MA of 25.74, and equal to the 200-day MA of 19.88, indicating a neutral trend. The MACD of -1.45 indicates Positive momentum. The RSI at 44.91 is Neutral, neither overbought nor oversold. The STOCH value of 66.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SATO.

SATO Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
SATO	―	―	$10.78M	0.60%	―
FTRI	―	―	$99.61M	0.70%	―
EBIZ	―	―	$52.60M	0.50%	―
BUYZ	―	―	$7.85M	0.50%	―
BLKC	―	―	$6.46M	0.60%	―
ISHP	―	―	$5.86M	0.60%	―

Performance Comparison

SATO

Invesco Alerian Galaxy Crypto Economy ETF

22.44

2.61

13.16%

FTRI

First Trust Indxx Global Natural Resources Income ETF

―

EBIZ

Global X E-commerce ETF

―

BUYZ

Franklin Disruptive Commerce ETF

―

BLKC

Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF

―

ISHP

First Trust Nasdaq Retail 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.

Disclaimer

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.Date of analysis: ―

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