A sound investment process and strong management team underpin iShares Bloomberg Roll Sel Brd Cmdty ETF's Morningstar Medalist Rating of Gold. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's sensible investment philosophy earns it a High Process Pillar rating. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

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. iShares Bloomberg Roll Sel Brd Cmdty ETF earns a High Process Pillar rating. The main contributor to 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. Impressive risk-adjusted performance also contributes to the process, as shown by the fund's five-year alpha calculated relative to the category index, which suggests the process was successful over that period.

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

 The investment seeks to track the investment results of the Bloomberg Roll Select Commodity composed of a broad range of commodity exposures with enhanced roll selection, on a total return basis.  The index measures the performance of 23 futures contracts across 21 physical agricultural, energy, precious metals and industrial metals commodities. In seeking to achieve its investment objective, the fund will primarily invest in exchange-traded futures contracts on the underlying index, and the adviser is expected to roll out of existing positions in index futures and establish new positions in index futures on an ongoing basis. It is non-diversified.

High

Process

iShares’s team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are four managers listed on the fund: Paul Whitehead, Greg Savage, Orlando Montalvo, Richard Mejzak. The team is well equipped, with an average of 19 years of portfolio management experience. Together, they manage a total of three strategies, with a Gold asset-weighted average Morningstar Medalist Rating, demonstrating their 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.

Above Average

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares Bloomberg Roll Select Broad Commodity ETF

CMDY tracks an index that holds futures contracts on a roll-cost optimized broad market commodity index.

The iShares Bloomberg Roll Select Commodity Strategy ETF (CMDY) uses one Futures contract to cover the commodities market. It is designed to minimize contract rolling costs. The Bloomberg Roll Select Commodity Index is a dynamic version of the Bloomberg Commodity Index designed to mitigate the effects of contango market structure. CMDY uses Futures on this index.

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