An incline in its Process Pillar rating is the primary driver of Conductor Global Equity Value ETF's upgrade to a Morningstar Medalist Rating of Neutral from Negative. 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 portfolio management team does not stand out and still needs to prove it has a competitive advantage. This earns the strategy an Average People Pillar rating. The strategy gets an Average Process Pillar rating.  Momentum exposure is attributed to holding stocks currently on a winning streak and selling those that are on a downtrend. And a high quality exposure is rooted in holding stocks with low financial leverage and strong returns on equity. The strategy's parent organization still has a way to go to reach the industry standard, evidenced by steep fees and a bench of limited-tenure portfolio managers. As a result, the firm obtains a Below Average Parent Pillar rating.

Analyst Rating

Abercrombie & Fitch

ALPS Clean Energy ETF

National HealthCare

VictoryShares Emerging Market High Dividend Volatility Wtd ETF

Kronos Worldwide

Mobile Global Esports Inc

Innoviva

Intel

Stem, Inc

Affiliated Managers

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. Conductor Global Equity Value ETF earns an Average Process Pillar rating. 

The main driver of the rating is the firm's five-year retention rate of 100% over the period. The stability of the management team also strengthens the process. Specifically, the fund has not seen a manager change in the last eight years. 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 low.

 This strategy prefers smaller market-cap companies compared with the average fund in its peer group, the Foreign Small/Mid Value Morningstar Category.  But in terms of investment style, it is on par with peers. Looking at additional factor exposure, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last few years. Momentum is based on the premise that stocks that have recently outperformed will continue to outperform, and those that have underperformed will stay behind. In recent months, the strategy was more exposed to the Momentum factor compared with its Morningstar Category peers as well. This strategy also has tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity, during these years. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. In addition, this strategy's holdings have included more companies with high dividend or buyback yields than peers over these years. Stocks with high yields can be more stable, mature companies, but at times extreme market pressure or fundamental deterioration may prompt them to cut their dividends, which tends to hurt stock performance. In this month, the strategy also had more exposure to the Yield 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 consumer cyclical and basic materials relative to the category average by 8.6 and 5.8 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and real estate, with financial services underweighting the average portfolio by 10.3 percentage points of assets and real estate similar to the average. The portfolio is composed of 93 holdings and is quite concentrated. Specifically, 19.6% of the portfolio's assets are housed within the top 10 holdings, compared to the category’s 13.6% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 114% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Average

Process

Conductor Global Equity Value ETF earns an Average People Pillar rating. The most important driver of the rating is the firm's five-year retention rate of 100%. The stability of the management team also influences the rating. Specifically, the fund has not seen a manager change in the last eight years. Lastly, the rating is limited by high costs, with fees that rank in its category's most expensive quintile. Fees detract from net returns, giving this team a significant hurdle to overcome.

People

Global Conductor has a ways to go to become an industry-standard steward, resulting in a Below Average Parent Pillar rating. Fees on the firm's open-end and exchange-traded funds are a weakness, contributing negatively to the rating and creating a larger performance hurdle on funds. On average, Global Conductor charges fees on its funds that are in the second most-expensive quintile of similarly distributed funds. With the current market environment of fee compression, this is cause for concern, as investors may flock over time to alternate asset managers to get a better deal. With an average asset-weighted tenure of eight years among the longest-tenured managers at Global Conductor, the firm is on par with peers. Seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions. Global Conductor has exhibited a reliable and stable portfolio management culture over the past five years, as evidenced by lower-than-average turnover, strengthening the assessment of the firm's stewardship.

Below Average

Parent

Conductor Global Equity Value ETF

CGV is an actively managed fund of equity securities issued by companies globally, that exhibit value characteristics. Holdings are selected using technical, fundamental, and quantitative analyses.

NEW YORK , Feb. 20, 2024 /PRNewswire/ -- IronHorse Capital, a leading provider of innovative investment solutions, today announced its decision to transfer the listing of the Conductor Global Equity Value ETF (Ticker: CGV) from NYSE ARCA to the New York Stock Exchange (NYSE) Floor, effective February 23, 2024. The Conductor Global Equity Value ETF (Ticker: CGV) offers investors an innovative avenue to access global equities traded in their native markets and currencies, all within a discerning value-oriented investment framework.

IronHorse Capital Transfers Listing of Conductor Global Equity Value ETF (Ticker: CGV) to New York Stock Exchange (NYSE) Floor

The Conductor Global Equity Value ETF is the first ETF managed/advised by IronHorse.  Historical data is available from the Mutual Fund version which CGV acquired. This is presented. Suspecting most readers have not heard of Iron Horse Capital management, I provide an overview of their philosophy and strategy.

First Look At The Conductor Global Equity Value ETF

Investment advisor IronHorse Capital Management has transferred its Conductor Global Equity Value mutual fund into its first exchange traded fund under the Conductor Funds brand.

News for Conductor Global Equity Value ETF ETF (CGV)