The combination of a middling Process Pillar rating and a Below Average People Pillar rating limit  Adasina Social Justice All Cp Glbl ETF to a Morningstar Medalist Rating of Neutral.  The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The strategy's management team is about as experienced as others, but due to other weaknesses, the strategy earns a Below Average People Pillar. The strategy merits an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight liquidity exposure and has a substantial underweight in quality exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The strategy's parent organization is industry standard, albeit with some strong attributes like continuity among portfolio managers, but is held back by a disappointing average Morningstar Rating. This earns the firm an Average Parent Pillar rating.

Analyst Rating

Mastercard

Hyatt Hotels

NetApp

Visa

Aflac

Roper Technologies

Automatic Data Processing

AstraZeneca

NXP Semiconductors

Danaher

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Adasina Social Justice All Cp Glbl ETF earns an Average Process Pillar rating. 

The largest contributor to the rating is the firm's five-year retention rate of 100% over the period. The size of the portfolio management team also supports the process. With four portfolio managers, the fund is reasonably well-resourced. Lastly, the process is limited by high costs across its parent firm's funds, whose fees rank in their category's costliest quintile on average. While this fund's costs are most relevant to investors, the pattern at the broader firm suggests it could do more to keep expenses down.

 This strategy leans toward smaller, more growth-oriented companies compared with its average peer in the Global Large-Stock Blend Morningstar Category. Analyzing additional factors, this fund has constantly tilted toward stocks with higher trading volumes than its Morningstar Category Peers over the past few years. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to suffer from a significant loss. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. The strategy has also had a defensive tilt, demonstrated by lower exposure to the quality factor than peers in recent years. This means the fund has avoided holding companies that are consistently profitable, growing, and have solid balance sheets. Such positions do not tend to provide much ballast for a portfolio. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. This is a higher-risk, higher-reward approach. In this month, the strategy also had more exposure to the Volatility factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in financial services and communication services relative to the category average by 6.3 and 4.1 percentage points, respectively. The sectors with low exposure compared to category peers are consumer cyclical and energy, underweight the average by 6.3 and 4.6 percentage points of assets, respectively. The strategy owns 661 securities and is diversified among those holdings. In its most recent portfolio, 17.9% of the fund’s assets were concentrated in the top 10 fund holdings, as opposed to the category average's 25.7%. And finally, in terms of portfolio turnover, on a year-over-year basis, 108% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

Adasina Social Justice All Cp Glbl ETF earns a Below Average People Pillar rating. The team is strengthened by the firm's five-year retention rate of 100%. However, the rating is held back by the combined average five-year excess return of each manager, which suggests that the funds they manage have underperformed their respective category average. Management team experience, which averages seven years at this fund, also weakens the team.

Below Average

People

Adasina Social Capital is an industry-standard asset manager, leading to an Average Parent Pillar rating. Portfolio management turnover has been minimal at the firm since the firm's inception. Long-term stability signals a strong investment culture. The Adasina Social Capital roster of open-end and exchange-traded funds has had below-average risk-adjusted performance, as shown by its average three-year Morningstar Rating of 2.0 stars.

Parent

Adasina Social Justice All Cap Global ETF

JSTC is an actively managed fund of global companies screened for social justice criteria.

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