Defiance Israel Bond ETF retains its Morningstar Medalist Rating of Bronze. The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy's sensible investment philosophy earns it a High Process Pillar rating. The team managing this passive strategy earns a Below Average People Pillar rating. The strategy's parent firm has some investor-friendly attributes, like overall attractive fees, but it is held back by discontinuity among portfolio managers. As a result, the firm gets an Average Parent Pillar rating.

Analyst Rating

Defiance Israel Bond ETF earns a High Process Pillar rating. 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. The main 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 parent firm's five-year risk-adjusted success ratio of 50% also influences the rating. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. Their impressive success ratio suggests that the firm does well for investors and that this fund may benefit from that. The parent firm's risk-adjusted performance, as shown by its average overall Morningstar Rating of 2.7 stars, contributes to the process as well.

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

The investment seeks to track the total return performance, before fees and expenses, of the MCM-BlueStar®Israel Bonds Index.  Under normal circumstances, the fund invests at least 80% of its net assets in bonds issued by (i) the Israeli government, (ii) Israeli government-related entities, (iii) companies either domiciled in Israel or included in the universe of the index, or (iv) Israeli Shekel denominated corporate debt. The index is comprised of global Israeli companies, across all sectors of the economy, irrespective of their listing venue, and as determined by the index provider based on its proprietary research-driven framework. The fund is non-diversified.

High

Process

Defiance’s team receives a Below Average People Pillar rating. The team is supported by the strategy's costs, which rank in its category's cheapest quintile. Fees detract from net returns, so the managers have a lower expense hurdle to overcome. However, the rating is held back by the combined average five-year excess return of each manager, which indicates that the funds they manage have underperformed their respective category average. Turnover at its parent firm also weakens the team. The firm's asset-weighted manager tenure of three years suggests it could do more to hold onto portfolio managers.

Below Average

People

Defiance's track record as a steward is mixed, leading to an Average Parent Pillar rating. A strength of Defiance is that its product shelf of open-end and exchange-traded funds is, on average, offered at a minimal cost, suggesting that it considers what's best for its investor base. On average, fees for funds are in the lowest quintile of respective category peers. Defiance has undergone a bout of turnover in the past five years, as seen in its lower-than-average portfolio manager retention. This is a concern, as long-term stability tends to support positive results. The longest-tenured managers’ average tenure is slim, two years, compared with peer firms. This contributes negatively to the rating as the current managers have limited experience running strategies at the firm.

Average

Parent

Defiance Israel Bond ETF

CHAI is the first Isarael Bond ETF that tracks a market value-weighted index of USD- and ILS-denominated bonds issued by the Israeli government and related entities, and corporations. The fund holds debts of any maturity and credit quality.

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Defiance Launches Israel Bond ETF CHAI

FRANKFURT, Germany--(BUSINESS WIRE)--MarketVector IndexesTM (“MarketVector”) announces the licensing of the MCM-BlueStar® Israel Bonds Index (MBILB) to Defiance ETFs. The firm today launched the Defiance Israel Bond ETF (NYSE Ticker: CHAI), a first-of-its-kind fund that invests in Israeli government and corporate bonds, offering diversified exposure to the Israeli fixed-income market. The CHAI ETF will track the MCM-BlueStar® Israel Bonds Index. The MCM-BlueStar® Israel Bonds Index (MBILB) trac.

MarketVector Indexes Licenses the MCM-BlueStar® Israel Bonds Index to Defiance for the first-ever Israel Bond ETF (CHAI)

MIAMI--(BUSINESS WIRE)---- $CHAI #ETFs--Defiance announced today the launch of the first Israel Bond ETF, trading under the ticker symbol "CHAI" on the New York Stock Exchange (NYSE). The goal of the Israel Bond ETF is to provide liquid access to Israel government and corporate bonds. The ETF structure empowers investors by allowing individuals to buy and sell on a daily basis either in their brokerage account or with their financial advisor. CHAI predominantly invests in Israel government and corporate bonds,.

CHAI, the First Israel Bond ETF, Launches Today on the New York Stock Exchange (NYSE)

News for Defiance Israel Bond ETF ETF (CHAI)