The combination of a middling Process Pillar rating and a Below Average People Pillar rating limit  Grizzle Growth ETF to a Morningstar Medalist Rating of Neutral.  The portfolio maintains a cost advantage over competitors, priced within the second-lowest fee quintile among peers.  

 The longest-tenured manager has a wealth of experience, but due to other weaknesses, the strategy earns a Below Average People Pillar. The strategy gets an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a considerable overweight position in liquidity exposure and volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy's parent organization is industry standard, albeit with some strong attributes like modest portfolio manager turnover and overall low fees. This earns the firm an Average Parent Pillar rating.

Analyst Rating

NVIDIA

Microsoft

Alphabet

Advanced Micro Devices

Airbnb

Amazon

Apple

Range Resources

Vertiv Holdings Co

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. Grizzle Growth 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. Low expenses across its parent firm's funds, whose fees, on average, rank in the second-cheapest quintile of their respective category, also strengthen the process. The pattern of low expenses at the firm suggests that it is focused on delivering strong results for investors. Lastly, the process is limited by being an actively managed strategy. Historical data, like Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

 This strategy leans toward smaller, deeper value companies compared with its average peer in the Large Growth Morningstar Category. Looking at additional factor exposure, this strategy has held more highly liquid stocks compared to Morningstar Category Peers in the past few years. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. This orientation tends to pay off most prominently when markets are hot. Compared with category peers, the strategy also had more exposure to the Volatility 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 recent months, however, the strategy had less Yield factor exposure 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 technology and basic materials relative to the category average by 11.5 and 9.5 percentage points, respectively. The sectors with low exposure compared to category peers are healthcare and consumer cyclical, underweight the average by 11.7 and 6.7 percentage points of assets, respectively. The portfolio is composed of 41 holdings and is relatively concentrated. Specifically, 68.9% of the fund’s assets are housed within the top 10 holdings, compared with the category’s 53.2% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 59% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Average

Process

Grizzle Growth ETF earns a Below Average People Pillar rating. The team benefits from the firm's five-year retention rate of 100%. However, the rating is weakened by the number of months that the management team has been running this vehicle together. The fund's fees, which rank in its category's second cheapest quintile, also hold the rating back. That could be worse, but investors would get better net results if fees were even lower.


Thomas George, the longest-tenured manager on the strategy, boasts 16 years of listed portfolio management experience.  Thomas George draws on only one other listed manager. Together, they are adequately equipped with nine years of average listed portfolio management experience.

Below Average

People

Since its inception two years ago, Grizzle has demonstrated that it will hold its own as a steward of capital, warranting an Average Parent Pillar rating. Grizzle currently oversees two vehicles, with a total of $13.9 million under management and a roster of two portfolio managers.   

 Grizzle deserves plaudits for its commitment to below-average fees for its open-end and exchange-traded funds, which showcases its willingness to prioritize investors. The firm's average net expense ratio across all funds is in the second-lowest quintile of firms.  

 To keep an Average rating, Grizzle needs to maintain a consistent track record of positive investor experience.

Parent

TIDAL TRUST II - Grizzle Growth ETF

DARP is an actively managed fund of global stocks involved in four key growth themes: Digitization and Cloud Computing, Future Media and Entertainment, Health and Wellness, and Sustainability and Energy Transition.

Fidelity Growth Opportunities ETF

Innovator Loup Frontier Tech ETF

WisdomTree Modern Tech Platforms Fund

IQ Global Equity R&D Leaders ETF

Despite challenging economic backdrop, these global ETFs trumped the S&P 500 in the first nine months of 2023.

5 Global ETFs Beating S&P 500 in the First Nine Months of 2023

Philadelphia, Pennsylvania--(Newsfile Corp. - August 28, 2023) - Grizzle Investment Management "Grizzle", an emerging sponsor of actively managed exchange-traded funds (ETFs), is excited to announce the reorganization of the Grizzle Growth ETF (NYSE: DARP) in partnership with Cambria Investment Management and Tidal Financial Group. The Grizzle Growth ETF is now trading on the NYSE Arca under the symbol DARP (Disruption at a Reasonable Price).

News for TIDAL TRUST II - Grizzle Growth ETF ETF (DARP)