The combination of a middling Process Pillar rating and a Low People Pillar rating limit  Range Global Coal ETF to a Morningstar Medalist Rating of Neutral.  The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 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 momentum exposure is rooted in holding stocks currently on a winning streak. The strategy's parent organization still has a way to go to reach the industry standard, evidenced by unsubstantial personal investments from portfolio managers and relatively short-tenured portfolio managers. As a result, the firm obtains a Below 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. Range Global Coal ETF earns an Average Process Pillar rating. The primary 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. The size of the portfolio management team also supports the rating. With four portfolio managers, the fund is reasonably well-resourced. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 0%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Range Global Coal Index.  The fund normally invests in securities comprising the index. The index is designed to track the performance of companies that are involved in the metallurgical (met) and thermal coal industry, which includes production, exploration, development, transportation, and distribution (“Coal Companies”). Under normal circumstances, and the fund invests at least 80% of its net assets in securities of coal companies. The fund is non-diversified. 

 The portfolio is overweight in basic materials by 54.0 percentage points in terms of assets compared with the category average, and its consumer defensive allocation is similar to the category. The sectors with low exposure compared to category peers are energy and utilities, underweight the average by 42.7 and 6.8 percentage points of assets, respectively. The strategy owns 32 securities and is relatively concentrated. Specifically, 62.7% of the strategy's assets are housed within the top 10 holdings, as opposed to the category’s 51.2% average.

Average

Process

Exchange Traded Concepts’s team earns a Low People Pillar rating. The number one detractor from the rating is the experience of the management team, which averages four years at this fund. The instability of management across its parent firm also detracts from the team. The firm's asset-weighted manager tenure of four years suggests it could do more to retain portfolio managers. The parent firm's five-year success ratio of 0% further weakens the team. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

People

Exchange Traded Concepts lags peer asset managers in a number of stewardship qualities, resulting in a Below Average Parent Pillar rating. Portfolio managers at Exchange Traded Concepts tend not to invest alongside their shareholders, detracting from the overall stewardship assessment. None of the firm’s assets are covered by an invested manager. A cause for concern at Exchange Traded Concepts is its relatively inexperienced longest-tenured management. In particular, average asset-weighted tenure at the firm is only four years, a negative contributor to the rating. The firm charges fees on its open-end and exchange-traded funds that are on par with category peers. On average, fund fees on its products fall in the middle quintile, giving it neither an advantage nor disadvantage compared with the competition.

Below Average

Parent

Range Global Coal Index ETF

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Range Global LNG Ecosystem Index ETF

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Range Global Offshore Oil Services Index ETF

Range ETFs expanded its lineup on Wednesday to include four energy-related ETFs. They cover the coal, natural gas, oil services, and nuclear industries.

Range Debuts 4 Energy-Related ETFs

NEW YORK , Jan. 24, 2024 /PRNewswire/ -- Exchange Traded Concepts is delighted to introduce the new lineup of Range ETFs: Range Global LNG Ecosystem Index ETF (NYSE: LNGZ), Range Nuclear Renaissance Index ETF (NYSE: NUKZ), Range Global Coal Index ETF (NYSE: COAL), and Range Global Offshore Oil Services Index ETF (NYSE: OFOS). The unifying theme of the Range ETFs is the belief that energy will be the driving force of the global markets for the next decade.

News for Range Global Coal Index ETF ETF (COAL)