(AIYY) Tidal Trust II - Ratings and Ratios

Tidal Trust II (NYSE ARCA: AIYY) is an actively managed exchange-traded fund (ETF) designed to generate current income while providing indirect exposure to the share price of C3.ai, Inc. (AI). The fund employs a derivatives-based strategy to achieve its objectives, balancing income generation with controlled exposure to AIs stock performance. While the fund seeks to capitalize on AIs price movements, it does so with a built-in limit on potential gains, which may reduce its upside during periods of significant stock appreciation. The ETF does not adopt a defensive strategy during adverse market conditions, maintaining its investment posture regardless of broader economic or market volatility.

As a non-diversified fund, AIYY concentrates its investments in a limited number of securities, which may amplify both potential returns and risks. Its focus on derivatives for indirect exposure to AI introduces complexity, and its performance may not perfectly align with the underlying stock. The funds structure is designed for investors seeking a unique combination of income and indirect equity exposure, though it may appeal to those with a higher risk tolerance due to its non-diversified nature and reliance on derivatives.

From a technical perspective, AIYY is currently trading below its 20-day, 50-day, and 200-day simple moving averages (SMA), which are 6.58, 7.16, and 7.16, respectively. This suggests bearish momentum in the near term. The Average True Range (ATR) of 0.35 indicates relatively low volatility. With an average daily volume of 573,060 shares over the past 20 days, liquidity is moderate but sufficient for most investors. The funds assets under management (AUM) of $87.79 million reflect its scale within the ETF landscape.

Looking ahead, the next three months may see AIYY face headwinds due to its current position below key moving averages. The technical setup suggests limited upside potential unless the fund can break above its 50-day SMA at 7.16. On the fundamental side, the funds AUM stability and moderate trading volume provide a foundation for liquidity, though its non-diversified nature and derivative strategy introduce unique risks. Investors should monitor volatility and broader market conditions closely, as AIYYs performance may remain sensitive to shifts in investor sentiment and the underlying performance of C3.ai, Inc.