LRND NYLI U.S. Large Cap R&D Leaders ETF

NYLI U.S. Large Cap R&D Leaders ETF (LRND) currently reports 20 stock positions (subject to change), placing it in the concentrated range by holdings breadth. The top line-up is NVDA (18.29%), AAPL (16.94%), MSFT (12.57%), with NVDA as the largest single weight at 18.29%. Together, the top three holdings account for 47.80%, which signals meaningful concentration at the top of the book, where a small number of names can drive outsized swings in fund performance. This architecture allows the fund to express a clear investment thesis at the top while relying on the broader basket to manage idiosyncratic volatility.

From a capital efficiency perspective, ROIC is 59.44%, WACC is 11.22%, and the economic spread is 48.23%. On balance, the portfolio's holdings exhibit an exceptional economic spread, compounding intrinsic value at a rate few funds can match. Supporting metrics show ROE at 71.00% and ROA at 22.23%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a portfolio with credible compounding capacity if current operating execution persists.

Turning to how the market is pricing the underlying earnings, trailing P/E of 31.03, forward P/E of 23.77, PEG of 1.60. A moderate trailing-to-forward spread implies earnings growth is anticipated, though the scale of expected improvement is not dramatic. A PEG in this range suggests valuation is fair rather than compelling — the portfolio is priced adequately for its growth, with limited buffer for downside revisions. At 1.98, the aggregate current ratio indicates adequate but not exceptional balance sheet coverage. The combined picture across P/E, forward P/E, PEG, and current ratio suggests a portfolio that is priced for continued execution — where disappointment would be costly and outperformance would likely require positive earnings surprises.

On the margin front: gross margin sits at 62.25%, operating margin at 38.80%, and free cash flow margin at 26.63%. At this gross margin level, the portfolio's holdings demonstrate significant pricing power and production efficiency. The operating margin here is a standout — reflecting businesses that convert a large share of gross profit into operating earnings. At this FCF margin level, the underlying holdings have considerable financial flexibility without reliance on external financing. The margin trifecta here — strong at gross, operating, and free cash flow levels — is a hallmark of competitively advantaged businesses.

On the forward picture: TTM revenue growth of 28.57% reflecting robust top-line expansion across the underlying holdings. Consensus EPS estimates point to 30.6% earnings growth over the next 12 months — a compelling near-term earnings catalyst that, if delivered, changes the valuation conversation materially. Analyst price targets suggest street expectations point to meaningful upside if execution holds on a 12-month view. Revenue growth is grounded in reported results; price targets are forward projections that embed assumptions about multiple expansion, earnings delivery, and macro conditions. The key risk in both directions is whether the underlying businesses can maintain their operating trajectory as macro and sector conditions evolve. The estimated 12-month price change is a weighted composite of analyst price target estimates adjusted by each holding's ETF weight, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Across the metrics reviewed, the evidence is consistently constructive — quality, growth, and valuation are pulling in the same direction.

This assessment reflects quantitative metrics only and does not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results.