DriveWealth NYSE 100 ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the second-highest quintile among peers.  

 The strategy's sensible investment philosophy earns it an Above Average Process Pillar rating. The strategy’s management team earns an Average People Pillar rating. The People Pillar rating is indirectly assigned by an analyst rather than algorithmically derived. Please see the notes following pillar section for more details. The strategy's parent organization is industry standard, albeit with some strong attributes like low portfolio manager turnover, but is held back by relatively short-tenured portfolio managers. This earns the firm an Average Parent Pillar rating.

Analyst Rating

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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. DriveWealth NYSE 100 ETF earns an Above Average Process Pillar rating. The main driver of 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 firm's five-year retention rate of 100% also underpins the rating. Lastly, the process is limited by the number of months that the management team has been running this vehicle together.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to provide investment results that, before fees and expenses, track the performance of the DriveWealth NYSE 100 Index.  The index is a rules-based, equal-weighted index that tracks the performance of the top 100 U.S.-listed ETFs. The sub-adviser has adopted a policy to invest, under normal circumstances, at least 80% of the fund's net assets, plus the amount of any borrowings for investment purposes, and in the ETFs that comprise the index.

Above Average

Process

DriveWealth’s team is valuable but does not stand out as one of the industry's best, warranting an Average People Pillar rating. There are three managers listed on the fund: Dustin Lewellyn, Ernesto Tong, Anand Desai. The team is well equipped, with an average of 11 years of portfolio management experience. Together, they manage a total of 32 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

Average

People

Despite a short track record as a firm of only 11 months, DriveWealth has exhibited a handful of strong qualities, earning it an Average Parent Pillar rating. The firm currently manages one vehicle across a bench of three strategy managers. Even though DriveWealth is a new firm, it has hired seasoned managers with an average of over 11 years of industry experience. The firm's earliest portfolio manager hire, Dustin Lewellyn, has 14 years of industry experience and has performed well on other strategies, which is reassuring. 
 
   

 As DriveWealth builds and continues to develop a track record, its rating will be adjusted accordingly.

Parent

Drivewealth ICE 100 Index ETF

CETF tracks an index of the top 100 US-listed ETFs, selected based on size, liquidity and risk adjusted returns. The ETFs included in the index are not limited to a particular issuer, geography, asset class, sector or industry group and are equally weighted in the portfolio.

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iShares Currency Hedged MSCI United Kingdom ETF

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Kurv Yield Premium Strategy Amazon AMZN ETF

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JPMorgan Healthcare Leaders ETF

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The week ending November 3, 2023, saw a good number of new ETFs enter the market as well as several closures. In all, there were 14 new ETFs including launches from Defiance, First Trust, Innovator, Roundhill, ProShares, John Hancock, Kingsbarn Capital Management, Dimensional and SRH Funds.

This Week in ETFs: 14 New ETFs Debut From 11 Issuers

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DriveWealth has launched the DriveWealth ICE 100 Index ETF (CETF), a new exchange traded fund listed on the New York Stock Exchange that targets the top 100 U.S.-listed ETFs.

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News for Drivewealth ICE 100 Index ETF ETF (CETF)