The combination of a middling Process Pillar rating and a Low People Pillar rating limit  Blue Horizon BNE ETF to a Morningstar Medalist Rating of Neutral.  The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The team managing the passive strategy earns a Low People Pillar. The strategy earns an Average Process Pillar rating.  High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy's parent firm has some investor-friendly attributes, like overall attractive fees, but it is held back by an unsuccessful risk-adjusted track record. As a result, the firm gets an Average Parent Pillar rating.

Analyst Rating

Southern Copper

Energizer Holdings

Itron

AeroVironment

Freeport-McMoRan

NextEra Energy

First Solar

Clear Channel Outdoor Holdings

Eaton

Archer-Daniels-Midland Company

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Blue Horizon BNE ETF earns an Average Process Pillar rating. The main contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. 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 the experience of the management team, which averages four years at this fund.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the performance, before fees and expenses, of the Blue Horizon New Energy Economy 100 Index.  The index seeks to track the performance of a portfolio of companies that are leaders, enablers, and beneficiaries of a transformational shift in the way energy is produced, stored, distributed, and consumed. The fund will generally use a "replication" strategy to achieve its investment objective, and meaning it will generally invest in all of the component securities of the index in the same approximate proportions as in the index. 

 The portfolio is overweight in basic materials and utilities relative to the category average by 11.1 and 6.9 percentage points, respectively. The sectors with low exposure compared to category peers are healthcare and financial services, underweight the average by 10.5 and 10.1 percentage points of assets, respectively. The portfolio has 106 holdings and is about as top-heavy as the category average, with 15.3% of assets in the top 10 holdings. And finally, in terms of portfolio turnover, looking at year-over-year movements, 56% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Average

Process

Blue Horizon’s team earns a Low People Pillar rating. The main factor influencing the rating is the experience of the management team, which averages four years at this fund. The instability of talent across its parent firm also detracts from the team. The firm's asset-weighted manager tenure of three years suggests it could do more to hold onto portfolio managers. The turnover of its management team detracts from the rating further. Specifically, the fund last had a manager change three years ago.

People

In a competitive industry, Blue Horizon doesn't differentiate itself enough, leading to an Average Parent Pillar rating. An area of strength is the firm’s favorable fees for open-end and exchange-traded funds, demonstrating a firm-wide commitment to minimizing costs and maximizing investors’ returns. Fees for funds are, on average, within the cheapest quintile of similarly distributed strategies. The firm's risk-adjusted performance is poor. Across all open-end and exchange-traded products, the firm’s average three-year Morningstar Rating is 2.0 stars.

Parent

Blue Horizon BNE ETF

BNE tracks an equal-weighted index of global stocks that are perceived to benefit from a New Energy Economy.

The Blue Horizon BNE ETF offers investors exposure to 100 global leaders and innovators within the growing New Energy Economy

Blue Horizon BNE ETF (NYSE: BNE) Celebrates Two-Year Milestone – focused on leaders and innovators within the New Energy Economy

ALPS Clean Energy ETF

Global X CleanTech ETF

Invesco MSCI Sustainable Future ETF

First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund

iShares Global Clean Energy ETF

Invesco Global Clean Energy Portfolio

Invesco WilderHill Clean Energy ETF

VanEck Low Carbon Energy ETF

Russia's invasion of Ukraine is a stark reminder of the challenges to achieving a just and orderly energy transition. Clean power is now significantly more affordable than fossil fuel energy.

3 Reasons Why Clean Energy Is At A Tipping Point

The Blue Horizon BNE ETF offers complete exposure to the New Energy Economy, a multi-decade theme driv en by innovation in energy production, distribution, storage, and use .

News for Blue Horizon BNE ETF ETF (BNE)