(DEEP) Roundhill Acquirers Deep - Ratings and Ratios

The Roundhill Acquirers Deep Value ETF (NYSE ARCA: DEEP) is an exchange-traded fund designed to provide exposure to undervalued small-cap stocks in the U.S. market. Established in 2020 by Acquirers Funds, LLC, the fund tracks an index composed of 100 stocks selected from the smallest 75% of U.S. listed companies by market capitalization. These stocks are chosen based on their fundamental strength and valuation metrics, with an emphasis on liquidity to ensure tradability. The fund employs a passive management strategy, aiming to replicate the performance of its underlying index before fees and expenses by holding all component securities in proportions aligned with their index weights.

As a small-value focused ETF, DEEP targets companies that are undervalued relative to their financial metrics but exhibit strong fundamental characteristics. The funds methodology combines quantitative screening for undervaluation with a qualitative assessment of financial health, ensuring a balanced approach to stock selection. This dual focus aims to mitigate risks associated with deep value investing while capturing potential upside in overlooked small-cap equities.

From a structural perspective, DEEP is designed to maintain low turnover and operational efficiency, reflecting the passive nature of its investment strategy. The funds expense ratio and tracking error are closely monitored to ensure alignment with its index. Its liquidity profile is supported by the inclusion criteria, which emphasize tradable securities to facilitate smooth portfolio adjustments.