CNIC ICE US Carb Natrl Pwr Futs ETF retains its Morningstar Medalist Rating of Bronze. The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The strategy's effective investment philosophy earns it an Above Average Process Pillar rating. The team managing this passive strategy earns a Below Average People Pillar rating. The strategy's parent organization still has a way to go to reach the industry standard, evidenced by insignificant personal investments from portfolio managers and a bench of limited-tenure portfolio managers. As a result, the firm obtains a Below Average Parent Pillar rating.

Analyst Rating

Morningstar's style-agnostic evaluation of this fund's process seeks to understand whether the strategy has a performance objective and sensible, clearly defined, repeatable execution. CNIC ICE US Carb Natrl Pwr Futs ETF earns an Above Average Process Pillar rating.  The most important driver of the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 100% also supports the rating. Lastly, the process is limited by high costs across its parent firm's funds, whose fees rank in their category's highest-cost 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 costs low.

 The investment strategy as stated in the fund's prospectus is as follows: 

 The investment seeks to track the performance, before fees and expenses, and of the ICE U.S. Carbon Neutral Power Index (the “index”).  The fund’s investment adviser (the “Adviser”) seeks to achieve its investment objective by investing the fund’s assets in liquid U.S. electricity futures and carbon allowance futures contracts that are contained in the index or have characteristics that the Adviser believes make their return performance likely to be highly correlated to futures contracts that are contained in the index. The index tracks the broad U.S. electricity market on a carbon-neutral basis. The fund is non-diversified.

Above Average

Process

Carbon Neutral Investment Company’s team receives a Below Average People Pillar rating. The team benefits from the firm's five-year retention rate of 100%. However, the rating is weakened by the managers' failure to consistently outperform peers at the funds they run, as measured by their combined three-year manager excess returns. The number of months that the management team has been running this vehicle together also holds the rating back. Since this is a newly incepted product, more time is needed to monitor the team's capability at executing the strategy.

Below Average

People

Due to Carbon Neutral Investment Company's short track record as a firm, nine months, there has not been time to demonstrate whether it has a unique value proposition over peer asset managers. This earns the firm a Below Average Parent Pillar rating. The firm currently manages one vehicle, with a total of $4.4 million under management across a team of two portfolio managers. Despite its short history as a firm, its portfolio managers have built significant experience elsewhere, with an average of over 11 years in the industry. The firm's earliest portfolio manager hire, Charles A. Ragauss, has 11 years of industry experience but has not been an industry standout on other strategies. 
 
   

 As Carbon Neutral Investment Company builds and continues to develop a track record, its rating will be adjusted accordingly.

Parent

Cnic Ice US Carbon Neutral Power Index ETF

AMPD is passively managed to hold a carbon-neutral portfolio of liquid US electricity and carbon allowance futures contracts. The fund aims to provide inflation mitigation and portfolio diversification.

CNIC Funds and Tidal Financial Services have launched a carbon neutral commodities ETF to combat the effects of stubborn inflation on portfolios. The CNIC ICE U.S. Carbon Neutral Power Futures Index ETF (AMPD) leverages an electricity futures contract methodology to track the broad U.S. electricity market on a carbon neutral basis.

CNIC and Tidal Launch Carbon Neutral Commodities ETF

HOUSTON--(BUSINESS WIRE)--CNIC Funds, LLC, (CNIC) an investment company that develops commodity-based investment products in partnership with Tidal Financial Services, LLC (Tidal), proudly announces the launch of the exchange-traded fund, CNIC ICE U.S. Carbon Neutral Power Futures Index ETF (NYSE: AMPD).

News for Cnic Ice US Carbon Neutral Power Index ETF ETF (AMPD)