The combination of a middling Process Pillar rating and a Below Average People Pillar rating limit  IDX Dynamic Fixed Income ETF to a Morningstar Medalist Rating of Negative.  Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the most expensive quintile among peers.  

 The team managing the strategy earns a Below Average People Pillar. The strategy merits an Average Process Pillar rating.  The strategy's parent firm has some investor-friendly attributes, like high portfolio manager retention, but it is held back by relatively short-tenured portfolio managers. As a result, the firm gets an Average Parent Pillar rating.

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Morningstar's style-agnostic evaluation of this fund's process seeks to understand whether the strategy has a performance objective and sensible, repeatable execution. IDX Dynamic Fixed Income ETF earns an Average Process Pillar rating.    The largest contributor to 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 cheapest quintile of their respective category, also influence the rating. The pattern of low costs at the firm suggests that it is focused on delivering strong results for investors. Lastly, the process is limited by the experience of the management team, which averages four months at this fund.

 Compared with other funds in the Multisector Bond Morningstar Category, this fund, historically, hews closely to peers' credit and interest-rate sensitivity over the past few years. Opening the analysis to additional factors, the portfolio has displayed biases over time, whether towards or away from certain fixed-income instruments. Compared with the average strategy in the category, the managers have been significantly overweight corporate bonds in recent years. In the latest month, the strategy has relatively overweighted corporate debt compared with its peers as well. Additionally, there's been a notable underallocation from AAA rated bonds over the past few years. Similarly, in recent months, the strategy also had less exposure to AAA rated bonds than peers. Finally, during the past few years, the fund leaned away from debt with one- to three-year maturities. Nevertheless, the fund's debt with one- to three-year maturities exposure was in line with peers in the latest month.

  The portfolio's average surveyed credit quality is on par with peers, with both the fund and the average being rated BB.

Average

Process

IDX Dynamic Fixed Income 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 held back by the experience of the management team, which averages four months at this fund. The number of months that the management team has been running this vehicle together also holds the rating back. Since this is a newly incepted product, more time is needed to monitor the team's capability at executing the strategy.

Below Average

People

IDX Insights is an industry-standard asset manager, leading to an Average Parent Pillar rating. Morningstar generates quantitatively driven content for managed investments covered by the Morningstar Quantitative Rating, collectively called MQR Analysis. This strategy's Parent Pillar MQR Analysis content was not generated because of insufficient data. To generate individualized content, MQR Analysis requires sufficient data to generate its framework of “mental models” designed to mimic content written by analysts. The Quantitative Parent Pillar uses an algorithm designed to predict the Parent Pillar rating analysts would assign the investment product if they covered it.

Parent

IDX Dynamic Fixed Income ETF

DYFI is an actively managed fund-of-funds that invests broadly across various sectors of the fixed income markets around the world. Investment could include debt securities of various maturities and credit quality.

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News for IDX Dynamic Fixed Income ETF ETF (DYFI)