Gotham 1000 Value ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's sensible investment philosophy merits an Above Average 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 yield exposure compared with category peers. A high quality exposure means holding stocks that are consistently profitable, growing, and have solid balance sheets. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The management team invests alongside the strategy's shareholders, which helps it earn an Average People Pillar rating. The strategy's parent firm has some investor-friendly attributes, like a strong risk-adjusted track record and a favorable lineup success ratio. As a result, the firm gets an Average Parent Pillar rating.

Analyst Rating

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RenaissanceRe Hlds

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Humana

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. Gotham 1000 Value ETF earns an Above Average Process Pillar rating. 

The primary contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 82%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The firm's five-year retention rate of 100% also supports the rating. Lastly, the process is limited by being an actively managed strategy. Historical data, such as Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

 This strategy does not differentiate itself from its Mid-Cap Value category peers in terms of size and style exposure. Looking at additional factor exposure, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. Such holdings could cause it to trail peers during economic booms, but help it better withstand busts. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. This strategy has also displayed a tendency to hold more companies with high dividend or buyback yields than peers over recent years. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. Compared with category peers, the strategy also had more exposure to the Yield factor in the most recent month. Given the high trading volume of holdings, this fund also holds highly liquid assets. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In recent months, however, the strategy had less Liquidity factor exposure 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 consumer cyclical and energy relative to the category average by 8.2 and 6.3 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and real estate, underweight the average by 8.5 and 6.2 percentage points of assets, respectively. The strategy owns 502 securities and is diversified among those holdings. In its most recent portfolio, 5.1% of the portfolio's assets were concentrated in the top 10 fund holdings, as opposed to the category’s 17.3% average.

Above Average

Process

Gotham 1000 Value ETF earns an Average People Pillar rating. The largest contributor to the rating is the firm's five-year retention rate of 100%. The rating also benefits because a manager has at least $1 million invested in the strategy. Lastly, the rating is limited by the managers' failure to consistently outperform peers at the funds they run, as measured by their combined three-year manager excess returns.


Joel Greenblatt, the longest-tenured manager on the strategy, provides strong guidance, bringing forward 15 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 3.9 stars, indicating that their risk-adjusted returns exceeded the category average. Joel Greenblatt is supported by an experienced team, being able to draw on three additional listed managers, who average 13 years of listed portfolio management experience.

Average

People

In a competitive industry, Gotham doesn't differentiate itself enough, leading to an Average Parent Pillar rating. However, an area of strength for the firm is that they've delivered strong risk-adjusted returns for shareholders, with an average overall Morningstar Rating of 3.8 stars across its open-end and exchange-traded products. The metric measures the risk-adjusted performance of an asset manager's currently live funds. The product lineup at Gotham has exhibited exemplary durability compared with peer asset managers when looked at over the past five years. Notably, its five-year risk-adjusted success ratio stands at 82%, meaning that 82% of its products have both survived and beaten their respective category median on a risk-adjusted basis. Average tenure of eight years among the longest-tenured managers at Gotham is on par with peer firms. In isolation, seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions.

Parent

Gotham 1000 Value ETF

GVLU is an actively managed ETF consisting of large- and mid-cap value stocks from the United States.

Gotham Enhanced 500 ETF

Gotham Short Strategies ETF

Gotham Asset Management is looking to short midcap and large-cap stocks with its latest exchange traded fund (ETF). Now, the issuer has launched the Gotham Short Strategies ETF (NYSE Arca: SHRT) on the New York Stock Exchange.

Gotham Looks to Short Stocks Via SHRT

Gotham ETFs has launched a new value ETF this month.

A New Value ETF Hits the Market

Gotham Asset Management has launched the Gotham 1000 Value ETF (NYSE Arca: GVLU), an actively managed exchange-traded fund that begins trading Wednesday on the New York Stock Exchange Arca. GVLU invests in equity securities of 400 to 600 mid- to large-capitalization companies selected from a universe of the largest 1,400 companies listed on U.S. stock [.

News for Gotham 1000 Value ETF ETF (GVLU)