(TOLL) Tema Monopolies Oligopolies - Ratings and Ratios

The Tema Monopolies and Oligopolies ETF (BATS:TOLL) is designed to capitalize on market structures dominated by monopolies and oligopolies. Under normal market conditions, the fund allocates at least 80% of its net assets, including borrowings for investment purposes, to domestic and foreign common and preferred stocks of publicly traded companies. These companies must operate in markets where the Herfindahl-Hirschman Index (HHI), a measure of market concentration, exceeds 2,500 for the market responsible for over 50% of the companys revenue. The HHI is calculated based on the market share of the 50 largest firms in an industry. A score above 2,500 indicates a highly concentrated market, often characterized by reduced competition and pricing power. The fund is non-diversified, allowing it to take larger positions in a smaller number of securities, which may increase risk but also offers focused exposure to its investment strategy.

Over the next three months, TOLL is expected to exhibit moderate stability, supported by its focus on companies in concentrated industries. Technically, the funds price action is likely to remain range-bound, with the 20-day SMA (33.25) and 50-day SMA (32.71) suggesting near-term resistance and support levels. The average true range (ATR) of 0.51 indicates low volatility, implying that price fluctuations will remain subdued. The funds average volume of 11,475 shares over the past 20 days suggests limited liquidity, which may impact intraday trading dynamics. From a fundamental perspective, the funds assets under management (AUM) of $52.75 million reflect a modest but established investor base. Given the current market structure and the funds focus on monopolistic and oligopolistic industries, TOLL is likely to maintain its recent performance trajectory, with potential for slight upside driven by sector-specific tailwinds.