Weakness in RiverNorth Patriot ETF's Process and People Pillar ratings limits this strategy to a Morningstar Medalist Rating of Neutral. The portfolio maintains a cost advantage over competitors, priced within the second-lowest fee quintile among peers.  

 The strategy earns a Below Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in quality exposure and an overweight in yield exposure compared with category peers. Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The longest-tenured manager has a wealth of experience, but other weaknesses limit it to a Below Average People Pillar rating. The strategy's parent organization doesn't stand out, earning the firm an Average Parent Pillar rating. It has displayed a handful of investor-friendly attributes including a strong risk-adjusted track record but is held back by high portfolio manager turnover.

Analyst Rating

Intuit

Chemed

Republic Services

Martin Marietta Materials

Altria

Marathon Petroleum

Target

O'Reilly Automotive

AT&T

Saia

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. RiverNorth Patriot ETF earns a Below Average Process Pillar rating. 

The process is bolstered by its parent firm's impressive 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, like Morningstar's Active/Passive Barometer, shows that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

 This strategy leans toward larger, more undervalued companies than its average peer in the Mid-Cap Blend Morningstar Category. Analyzing additional factors, this strategy tilts consistently toward stocks with lower quality or the shares of companies with more financial leverage and lower profitability, compared with Morningstar Category peers over the past few years. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. In the latest month, the strategy was also less exposed to the Quality factor compared with Morningstar Category peers. This strategy's portfolio also has had exposure to more stocks with high dividend or buyback yields over peers in these years. Stocks with high yields can be more stable, mature companies, but at times extreme market pressure or fundamental deterioration may prompt them to cut their dividends, which tends to hurt stock performance. Compared with category peers, the strategy also had more exposure to the Yield factor in the most recent month. In addition, this strategy has constantly held more illiquid stocks, evidenced by holdings' low trading volume, resulting in higher liquidity risk exposure than peers. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. In recent months, the strategy also had less Liquidity factor exposure than 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 utilities and energy relative to the category average by 8.9 and 8.1 percentage points, respectively. The sectors with low exposure compared to category peers are technology and industrials, underweight the average by 11.6 and 7.9 percentage points of assets, respectively. The strategy owns 296 securities and is less top-heavy than peers. Specifically, 5.6% of the fund’s assets are concentrated within the top 10 fund holdings, as opposed to the category’s 15.4% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 46% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Below Average

Process

RiverNorth Patriot ETF earns a Below Average People Pillar rating. The team is supported by the combined average five-year excess return of each manager, which shows that the funds they manage have outperformed an average manager. However, the rating is weakened by the instability 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 rating is also held back because none of the managers have over $1 million invested in the fund.


Patrick W. Galley’s veteran status, with 17 years of listed portfolio management experience, brings a wealth of experience to the table. The average Morningstar Rating of the strategies they currently manage is 3.0 stars, demonstrating average risk-adjusted performance.

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

RiverNorth Patriot ETF

FLDZ is actively managed to invest in large- and mid-cap US stocks. The fund commits to donating the majority of its sub-advisory fee or 100% of its net profit, in the form of its management fee to the Folds of Honor Foundation.

RiverNorth Enhanced Pre-Merger SPAC ETF

CHICAGO , Dec. 16, 2022 /PRNewswire/ -- Today, TrueMark Investments ("TrueMark") announces plans to transfer the listings of the RiverNorth Enhanced Pre-Merger SPAC ETF (SPCZ) and the RiverNorth Patriot ETF (FLDZ), two exchanged-traded funds ("ETFs"), managed by TrueMark from the NYSE Arca to Cboe BZX Exchange, Inc. The transfer is expected to occur on or about December 30, 2022. No shareholder action is expected because of this change, nor is the transfer expected to affect the trading of fund shares.

TrueMark Investments Announces SPCZ and FLDZ ETFs Moving to Cboe BZX Exchange

Invesco BLDRS Emerging Markets 50 ADR Index Fund

Inspire 100 ETF

Inspire Global Hope ETF

Inspire Corporate Bond Impact ETF

Inspire Small/Mid Cap Impact ETF

LGBTQ+ ESG100 ETF

iShares MSCI USA Multifactor ETF

Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF

FCF International Quality ETF

It was a busy week, especially for expense ratio changes.

ETF Odds & Ends: Regents Park Adds Hedged Fund

Clockwise Capital Innovation ETF

Global X Telemedicine & Digital Health ETF

Fidelity Digital Health ETF

Roundhill MVP ETF

FT Cboe Vest Growth-100 Buffer ETF-March

Roundhill Streaming Services & Technology ETF

WisdomTree Bloomberg Floating Rate Treasury Fund

Plus, an actively managed ETF-of-ETFs and a digital health ETF launched during the week.

ETF Odds & Ends: Pending Conversions

By James Comtois RiverNorth Capital Management and TrueMark Investments announced on Monday the launch of the RiverNorth Volition America Patriot ETF (FLDZ), a U.S.-focused core equity portfolio that supports a charitable organization benefiting the families of killed or disabled service members. The new actively managed fund, listed on the NYSE on Jan. 3, seeks capital [.

RiverNorth and TrueMark Launch ETF Providing Scholarships for Families of Service Members

CHICAGO--(BUSINESS WIRE)--RiverNorth Capital Management, LLC and TrueMark Investments, LLC today announced the launch of the RiverNorth Volition America Patriot ETF (NYSE: FLDZ). The innovative Fund is designed to do double-duty as a US-focused core equity portfolio and as a support to a tremendous charitable organization. The majority of advisory fees and all profits from managing the Fund will be donated to Folds of Honor, a nonprofit organization that provides the families of fallen and disa

News for RiverNorth Patriot ETF ETF (FLDZ)