Weakness in Opal Dividend Income ETF's Process and People Pillar ratings limits this strategy to a Morningstar Medalist Rating of Negative. The portfolio maintains a sizable cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The strategy receives a Below Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in yield exposure and an underweight in quality exposure compared with category peers. High yield exposure is attributed to holding high dividend-paying or buyback stocks, and is suitable for income seekers outside of fixed-income. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The portfolio management team managing the strategy earns a Below Average People Pillar rating. The strategy's parent firm has some investor-friendly attributes, like a strong risk-adjusted track record, but it is held back by a pattern of portfolio manager churn. As a result, the firm gets an Average Parent Pillar rating.

Analyst Rating

Citigroup

Blue Owl Capital

Broadcom

QUALCOMM

Verizon

American Electric Power Company

Exxon Mobil

NextEra Energy

Philip Morris

Chevron

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. Opal Dividend Income ETF earns a Below Average Process Pillar rating. 

The process benefits from its parent firm's excellent long-term risk-adjusted performance, as shown by the firm's average overall Morningstar Rating of 4.0 stars. However, the rating is weakened by the parent firm's five-year retention rate of 77%, which suggests it could do more to retain its portfolio managers. Being an actively managed strategy also detracts from the process. Historical data, such as Morningstar's Active/Passive Barometer, shows that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

 This strategy skews toward smaller, more undervalued companies compared with its average peer in the Large Value Morningstar Category. Examining additional factor exposure, this strategy has continually displayed high-yield exposure compared with Morningstar Category peers during recent years, holding more companies returning cash to shareholders via dividends or buybacks. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. In recent months, the strategy was more exposed to the Yield factor compared with its Morningstar Category peers as well. The strategy has also had a defensive tilt, demonstrated by lower exposure to the quality factor than peers in recent years. This means the fund has avoided holding companies that are consistently profitable, growing, and have solid balance sheets. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. Compared with category peers, however, the strategy had more exposure to the Quality factor in the most recent month. Given the high trading volume of holdings, this fund also tilts toward liquid assets. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. In this month, the strategy also had more exposure to the Liquidity 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 defensive and energy relative to the category average by 10.7 and 8.8 percentage points, respectively. The sectors with low exposure compared to category peers are industrials and financial services, underweight the average by 10.6 and 6.0 percentage points of assets, respectively. The portfolio is positioned across 30 holdings and is relatively concentrated. Specifically, 48.3% of the fund’s assets are housed within the top 10 holdings, as opposed to the typical peer's 27.4%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 81% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Below Average

Process

Opal Dividend Income ETF earns a Below Average People Pillar rating. The team is supported by that a manager has at least $1 million invested in the strategy, which aligns their interests with fundholders. However, the rating is limited by the turnover of management across its parent firm. The firm's asset-weighted manager tenure of three years suggests it could do more to retain portfolio managers. The instability of its management team also holds the rating back. The fund last saw a manager change one year ago.

People

In a competitive industry, TrueMark doesn't differentiate itself enough, leading to an Average Parent Pillar rating. Even so, it's encouraging that the firm showcases strong risk-adjusted performance across its open-end and exchange-traded fund lineup, with an average overall Morningstar Rating of 4.0 stars. TrueMark has undergone a bout of turnover since the firm's inception, as seen in its lower-than-average portfolio manager retention. This is a concern, as long-term stability tends to support positive results. An average tenure of only three years among the longest-tenured managers at TrueMark is concerning. In isolation, seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions.

Average

Parent

TrueShares Low Volatility Equity Income ETF

DIVZ holds an actively-managed, concentrated portfolio of US-listed companies that are favorably valued and have attractive dividends. The fund also seeks to deliver lower volatility than the overall market.

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During the past week, in the wake of the Exchange conference, launches of new ETFs started to pick up again from their recent lull. A total of seven funds rolled out during the week, while several issuers announced or completed ETF closures.

This Week in ETFs: 7 New ETFs Dwarfed by 11 Closures

Neos Enhanced Income Cash Alternative Etf

During the week, several new ETFs debuted on the U.S. market, but the ETF industry was fairly quiet overall. Just five funds launched from issuers including KraneShares, Morgan Stanley subsidiary Eaton Vance, Direxion, and American Beacon.

This Week in ETFs: Just 5 New Funds in Quiet Week

Investors see warnings every day and under all economic conditions that the stock market is overvalued. Last year, high-flying technology companies led a broad decline for stocks, and many of those same companies have led this year's rebound.

The timing may be perfect for this dividend-stock fund if the market is getting close to a top

DIVZ is an actively-managed low-volatility ETF that has a 3.13% expected dividend yield. It was shortlisted for Active Equity ETF of the Year based on performance and fund flows in 2022. High Energy exposure was a big reason. However, exposure is down to around 15% due to the sector's underperformance YTD. DIVZ also made some key substitutions over the last quarter.

DIVZ: Tactical Adjustments Made To Help Defensive Dividend Investors

DIVZ is an actively-managed dividend ETF focusing on a select group of low-volatile blue-chip stocks. The expense ratio is 0.65% and assets under management are up to $78 million. I initiated coverage on DIVZ in September 2022 and was excited for its potential. The fund's manager was well-reasoned in his selections and his views on portfolio management resonated.

DIVZ: Manager Inactivity Takes Toll On This 3% Yielding ETF

ProShares S&P 500 Dividend Aristocrats ETF

Quality-stock and dividend-focused strategies shined during the market declines of 2022, rebounding from what investors may have found to be disappointing performance during the previous long bull market.

These 2 dividend-stock ETFs are more like growth funds in disguise. Can either still work in your income portfolio?

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It's tough to beat the "Dividend Aristocrats" for bankable dividend stocks. And investors now have three more in the S&P 500 to choose from.

There's 3 New Standout Dividend Stocks — And 3 Pay The Most

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This article summarizes the performance of the entire U.S. equity market by examining 1Y, 3Y, 5Y, and 10Y returns for 850+ ETFs across 40 categories. Major indices declined, but investing in Energy, High-Dividend, and Large-Cap Value ETFs softened the blow. Meanwhile, searching for the bottom in mega-cap growth and thematic ETFs didn't work.

U.S. Equity ETFs: The Best And Worst Of 2022

Former PIMCO portfolio manager Austin Graff has formed a new investment management company that specializes in equity income solutions. The newly launched company, Opal Capital LLC, will seek to deliver a range of actively managed income strategies driven by dividend-paying equities.

Former PIMCO PM Forms New Investment Firm With Opal Capital

BOCA RATON, Fla.--( BUSINESS WIRE )--Opal Capital, LLC (“Opal”), an investment management company that specializes in equity income solutions, today announces its formal launch. With a modern, focused approach, Opal Capital will seek to deliver a range of actively managed income strategies driven by dividend paying equities.

Opal Capital Launches, Bringing a Modern Approach to Dividend Investing

DIVZ is an actively-managed dividend ETF focusing on blue-chip stocks with stable free cash flows. Since its inception in January 2021, it's been one of the top performers in its category. I previously identified DHS as a passive and cheaper alternative. My fundamental analysis reveals DIVZ selects higher-quality companies, but lags on sales and earnings growth.

DIVZ: Checking In On This Top-Performing Dividend ETF

DIVZ is an actively-managed ETF currently holding 30 U.S. dividend-paying securities. With a focus on low-volatility, DIVZ has emerged a top-performer in the low-volatility category over the last year. The ETF is managed by Austin Graff, a CFA Charterholder and former co-manager of the PIMCO U.S. Dividend Fund. Graff selects companies with stable free cash flows and attractive valuations.

DIVZ: A New, High-Flying Dividend ETF Worth Watching

DIVZ is an actively managed concentrated portfolio calibrated using the dividend, quality, value, and low volatility factors. Its history is fairly short, yet it already has achievements worth discussing.

DIVZ: Good For Weathering A Storm, Unappealing Thereafter

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Decline sparked by a U.K. regulator's investigation into a planned merger.

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On Thursday, Rosemont, IL-based asset manager TrueMark Investments and Titleist Asset Management launched the TrueShares Low Volatility Equity Income ETF (DIVZ). DIVZ seeks to provide an actively managed, concentrated portfolio comprising 25 to 35 favorably valued companies with attractive dividends that the portfolio managers expect to grow over time.

TrueMark Launches Low Volatility Equity Income ETF, ‘DIVZ'

News for TrueShares Low Volatility Equity Income ETF ETF (DIVZ)