Weakness in Columbia Emerging Markets Consumer 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 cheapest fee quintile among peers.  

 The strategy earns a Low Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in quality exposure and an underweight in volatility exposure compared with category peers. A high quality exposure means holding stocks that are consistently profitable, growing, and have solid balance sheets. And low volatility exposure is rooted in stocks that have a lower standard deviation of returns. The equity team managing this passive strategy earns a Below Average People Pillar rating. The strategy's parent organization earns the firm an 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

Stewart Information Services

Pinduoduo Inc - ADR

Vodafone Group

Yum China Hlds

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. Columbia Emerging Markets Consumer ETF earns a Low Process Pillar rating. The most significant detractor from the rating is the fund's unremarkable long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's five-year retention rate of 67% also weakens the process. The parent firm's five-year risk-adjusted success ratio of 50% further limits the process. 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 investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Consumer Titans TM Index.  The fund invests at least 80% of its net assets in securities of emerging markets consumer companies which comprise the index and the advisor generally expects to be substantially invested at such times with at least 95% of its net assets invested in these securities. It is non-diversified. 

 The portfolio is overweight in communication services and consumer cyclical relative to the category average by 26.6 and 23.7 percentage points, respectively. The sectors with low exposure compared to category peers are technology and financial services, underweight the average by 24.3 and 22.0 percentage points of assets, respectively. The portfolio is composed of 67 holdings and is quite concentrated. In particular, 41.2% of the portfolio's assets are housed within the top 10 holdings, compared to the category’s 25.3% average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 13% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Process

Columbia Threadneedle’s equity team earns a Below Average People Pillar rating. The team benefits from the strategy's fees, which rank in its category's cheapest fifth. A higher expense ratio reduces net returns, so low costs give this team an advantage. However, the rating is held back by the parent firm's five-year retention rate of 67%, which suggests it could do more to hold onto its portfolio managers. The parent firm's five-year success ratio of 49% also holds the rating back. 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 modest success ratio suggests that the firm could do better across its fund lineup.

Below Average

People

Columbia Threadneedle is undergoing significant transitions on the personnel and operational fronts, underpinning an Average rating.

Colin Moore, Columbia CIO for nearly 20 years, retired at the end of 2021; William Davies, who had been CIO of global equities, replaced him. Moore had worked over the past several years to promote collaboration across his investment teams, including compelling portfolio managers to work with a centralized research pool and to act within consistent risk guardrails. The firm also made moves to streamline its product offerings, including merging or liquidating 28 strategies from January 2020 through March 2022.
These are sensible efforts, though there remain ongoing areas of uncertainty for Davies and CEO Ted Truscott to navigate. Though the firm's fixed-income team is mostly stable, its domestic-equity team has struggled for years with elevated turnover. Adding to this complexity, Columbia closed on its acquisition of Bank of Montreal's European investment business in November 2021, gaining numerous new U.S., U.K., and European-domiciled equity strategies, a compelling environmental, social, and governance capability, and a staff of 700 people. Though there are opportunities for Columbia to draw additional resources and capabilities from BMO, including specialists such as Pyrford International, it will take time to assess how these two firms mesh as a combined entity.

Average

Parent

Columbia Emerging Markets Consumer ETF

ECON tracks a market-cap-weighted index of 60 emerging-market companies in consumer-oriented sectors.

iShares Core 10+ Year USD Bond ETF

ILTB and ECON saw massive trading volumes in yesterday session.

2 ETFs to Watch for Outsized Volume on Bond and Emerging Markets

Emerging Markets Internet & Ecommerce ETF

The Next Frontier Internet & Ecommerce ETF

Columbia India Consumer ETF

Several ETFs offer varying takes to capitalize on emerging market consumer growth.

ETFs Offer Exposure To The EM Consumer

iShares U.S. Consumer Goods ETF

Invesco DWA Consumer Staples Momentum ETF

The best consumer staples ETFs for Q2 2021 are IYK, ECON, and PSL.

Best Consumer Staples ETFs for Q2 2021

iShares MSCI EM ESG Optimized ETF

iShares Currency Hedged MSCI Emerging Markets ETF

iShares Core MSCI Emerging Markets ETF

KraneShares Emerging Markets Consumer Technology Index ETF

While many emerging market ETFs have been performing remarkably well, we highlight five funds that are leading the space from a year-to-date basis.

Emerging Markets Hit Record High: 5 Top-Performing ETFs YTD

The best consumer staples ETFs for Q1 2021 are IYK, ECON, and PSL.

Best Consumer Staples ETFs for Q1 2021

Consumer Staples Select Sector SPDR Fund

The best consumer staples ETFs for Q4 2020 are IYK, ECON, and XLP.

Best Consumer Staples ETFs for Q4 2020

Vanguard FTSE Emerging Markets ETF

iShares JP Morgan USD Emerging Markets Bond ETF

SPDR S&P Emerging Markets Small Cap ETF

Schwab Fundamental Emerging Markets Large Co. Index ETF

KraneShares CSI China Internet ETF

SPDR Portfolio Emerging Markets ETF

WisdomTree Emerging Markets ex-State-Owned Enterprises Fund

Emerging markets ETFs can inject growth into your portfolio, as well as provide some much-needed diversification. Here are 10 top EM funds.

News for Columbia Emerging Markets Consumer ETF ETF (ECON)