Themes European Luxury ETF retains its Morningstar Medalist Rating of Bronze. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's investment process inspires confidence and earns an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in liquidity exposure and momentum exposure compared with category peers. Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And low momentum exposure is rooted in holding stocks that are not currently on a winning streak and instead holding those that managers believe are undervalued. The team managing this passive strategy earns a Below Average People Pillar rating. The strategy's parent firm has some investor-friendly attributes, like low portfolio manager turnover, but it is held back by portfolio managers with limited tenures at the firm. As a result, the firm gets an Average Parent Pillar rating.

Analyst Rating

Franklin Resources

Ermenegildo Zegna Holditalia SpA

Ferrari

Moelis

Associated Capital Group

Brunswick

Cullen/Frost Bankers

IT Tech Packaging Inc

InterContinental Hotels Group

Playa Hotels & Resorts

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Themes European Luxury ETF earns an Above Average Process Pillar rating. The leading factor in the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 100% also underpins the process. Lastly, the process is limited by the experience of the management team, which averages three months at this fund.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the performance, before fees and expenses, of the Solactive European Luxury Index.  The index is designed to provide exposure to European companies that have business operations in the luxury industry. The fund will invest, under normal circumstances, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, and in securities that comprise the index and in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”) based on the securities in the index. The fund is non-diversified. 

 The portfolio is overweight in consumer cyclical and basic materials relative to the category average by 9.8 and 2.9 percentage points, respectively. The sectors with low exposure compared to category peers are industrials and communication services, with industrials underweighting the average portfolio by 8.3 percentage points of assets and communication services similar to the average. The portfolio has 30 holdings and invests 44.9% of assets in its top 10 holdings, similar to the category average.

Above Average

Process

Themes ETF Trust’s team 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 three 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

Even though Themes ETF Trust's limited history of three months as a firm is working against its rating, they've proven to be an industry-standard steward, warranting an Average Parent Pillar rating. The firm currently manages 21 vehicles, with a total of $28.5 million under management across a bench of two strategy managers. As a new firm, there is very low manager industry experience--on average, less than six months. The firm's earliest portfolio manager hire, Dingxun(kevin) Shao, has only one year of industry experience. 
 
   

 As Themes ETF Trust builds and continues to develop a track record, its rating will be adjusted accordingly.

Average

Parent

Themes European Luxury ETF

FINE tracks an index comprised of companies in Developed Europe that offer luxury goods and services. The index selects and weights holdings towards those companies with most business exposure related to the investment theme.

Themes Airlines ETF

Themes Gold Miners ETF

Themes Cloud Computing ETF

Themes Natural Monopoly ETF

Themes Global Systemically Important Banks ETF

Themes US Small Cap Cash Flow Champions ETF

Themes Cybersecurity ETF

Themes US Cash Flow Champions ETF

Themes US R&D Champions ETF

Themes Generative Artificial Intelligence ETF

Priced at 0.35%, over 40% below the average expense ratio charged by other thematic funds, Themes ETFs seeks to provide investors with targeted thematic exposure at low costs.1 NEW YORK , Dec. 8, 2023 /PRNewswire/ -- Themes ETFs  debuts in the US market with the launch of 7 funds in its suite of low-cost thematic ETFs, which will begin trading on the Nasdaq over the coming weeks. With expense ratios priced at 0.35%, the company's 7 thematic funds are 40% cheaper than the average expense ratio of 0.60% charged by other thematic ETFs.1 Ticker Thematic Fund Name Expense Ratio GSIB Themes Global Systemically Important Banks ETF 0.35 % WISE Themes Generative Artificial Intelligence ETF 0.35 % CLOD Themes Cloud Computing ETF 0.35 % FINE Themes European Luxury ETF 0.35 % SPAM Themes Cybersecurity ETF 0.35 % AUMI Themes Gold Miners ETF 0.35 % AIRL Themes Airlines ETF 0.35 % 1 Source: ETF.com, Universe of 318 Theme Investing ETFs, as of 30 November 2023 Alongside its thematic offering, the company is also launching 4 low-cost fundamental ETFs.

Themes ETFs Launch with Expense Ratios 40% Below the Category Average

News for Themes European Luxury ETF ETF (FINE)