Future Fund Active ETF's Average People Pillar and Process Pillar ratings result in a Morningstar Medalist Rating of Neutral. Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the second-highest quintile among peers.  

 The strategy benefits from its experienced portfolio management team. This is a positive driver for the strategy's Average People Pillar rating. The strategy merits an Average Process Pillar rating.  High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. To be considered a quality steward, this strategy's parent organization needs to improve factors like a bench of unseasoned portfolio managers and unreasonable fees. As a result, the firm obtains a Below Average Parent Pillar rating.

Analyst Rating

Alphabet

NVIDIA

Eli Lilly

Chart Industries

Airbnb

Chipotle

Halozyme Therapeutics

Uber

salesforce.com

Green Plains

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. The Future Fund Active ETF earns an Average Process Pillar rating. 

The predominant contributor to the rating is the firm's five-year retention rate of 100% over the period. Management team experience, which averages 18 years at this fund, also contributes to the process. Lastly, the process is limited by high costs across its parent firm's funds, whose fees rank in their category's second-costliest quintile on average. While this fund's costs are most relevant to investors, the pattern at the broader firm suggests it could do more to keep expenses down.

 This strategy leans toward smaller, more growth-oriented companies than its average peer in the Large Growth Morningstar Category. Analyzing additional factors, this fund has constantly tilted toward stocks with higher trading volumes than its Morningstar Category Peers over 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. 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 surpass peers during economic booms. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. This orientation tends to pay off most prominently when markets are hot. In this month, the strategy also had more exposure to the Volatility 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 communication services and consumer cyclical relative to the category average by 7.3 and 7.1 percentage points, respectively. The sectors with low exposure compared to category peers are technology and financial services, underweight the average by 14.1 and 3.9 percentage points of assets, respectively. The strategy owns 32 securities and its assets are more dispersed than peers in the category. In particular, 45.6% of the fund’s assets are concentrated in the top 10 fund holdings, compared to the category average's 54.8%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 34% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

The Future Fund Active ETF earns an Average People Pillar rating. The most significant contributor to the rating is the firm's five-year retention rate of 100%. Management team experience, which averages 18 years at this fund, also supports the rating. Lastly, the rating is limited by the number of months that the management team has been running this vehicle together.

People

At this time, The Future Fund LLC's assessment results in a Below Average Parent rating. In its two-year history as a firm, there has been little evidence to suggest The Future Fund LLC is a superior steward of capital compared with other asset managers. The Future Fund LLC currently runs two vehicles, with a total of $11.5 million under management and a bench of two portfolio managers. As a small group, this management team is quite accomplished with about 18 years of average total industry experience.  

 High costs on open-end and exchange-traded funds at The Future Fund LLC represent a stiff headwind to performance. The average net expense ratio of its funds falls within the second-highest quintile compared with others.  

 To upgrade the firm's rating, The Future Fund LLC needs to build a consistent track record of positive investor experience.

Below Average

Parent

The Future Fund Active ETF

FFND seeks long-term capital growth from an actively managed fund of US-listed stocks that benefit from emerging secular trends driven by technological, social and environmental changes.

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Amplify Cybersecurity ETF

iShares North American Tech-Multimedia Networking ETF

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ARK Innovation ETF

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American Century Diversified Corporate Bond ETF

American Century Multisector Income ETF

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Bond ETFs Gain as Traders Pick Up Safety

On Tuesday, the Future Fund LLC, an SEC-registered investment advisor, launched its first ETF, the Future Fund Active ETF (FFND). The fund has begun trading and seeks to provide capital appreciation.

The Future Fund Launches New Active ETF, ‘FFND'

CHICAGO, Aug. 24, 2021 /PRNewswire/ -- The Future Fund LLC, an SEC-registered investment advisor, launched its first ETF, The Future Fund Active ETF. The fund, ticker FFND, begins trading today, and seeks to provide capital appreciation.

News for The Future Fund Active ETF ETF (FFND)