Jacob Forward ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy gets an Average Process Pillar. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in liquidity exposure and an underweight in quality exposure compared with category peers. 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. This management team has a wealth of experience, but still gets an Average People Pillar rating. The strategy's parent firm has some investor-friendly attributes, like high portfolio manager retention and a bench of seasoned portfolio managers. As a result, the firm gets an Average Parent Pillar rating.

Analyst Rating

Porch Group

DraftKings

Alphatec Hlds

Inspired Entertainment

OptimizeRx Corp

Esperion Therapeutics

Heron Therapeutics

Block

Doximity

Nextdoor

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. Jacob Forward ETF earns an Average Process Pillar rating. 

The most substantial contributor to the rating is the firm's five-year retention rate of 100% over the period. Management team experience, which averages 22 years at this fund, also contributes to the process. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 0%. 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 subpar success ratio suggests that the firm could do better across its fund lineup.

 This strategy skews toward smaller, higher-growth companies compared with its average peer in the Small Growth Morningstar Category. Looking at additional factor exposure, this strategy has consistently tilted toward companies with relatively higher trading volumes in the last 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. This strategy has also favored low-quality stocks. This means the fund avoids holding companies that are consistently profitable, growing, and have solid balance sheets. Such positions do not tend to provide much ballast for a portfolio. 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. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. 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 healthcare and communication services relative to the category average by 23.8 and 11.3 percentage points, respectively. The sectors with low exposure compared to category peers are industrials and financial services, underweight the average by 19.6 and 6.9 percentage points of assets, respectively. The strategy owns 41 securities and is relatively concentrated. Specifically, 48.0% of the fund’s assets are housed within the top 10 holdings, as opposed to the category’s 26.3% average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 63% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Average

Process

Jacob Forward ETF earns an Average People Pillar rating. The main contributor to the rating is the firm's five-year retention rate of 100%. The stability of the management team also supports the rating. Specifically, the fund has not seen a manager change in the last three years. Lastly, the rating is limited by the parent firm's five-year success ratio of 40%. 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.


Ryan I. Jacob’s veteran status, with over 25 years of listed portfolio management experience, brings a wealth of experience to the table. The strategies they currently manage have an average Morningstar Rating of 1.0 stars, demonstrating disappointing risk-adjusted performance compared with category peers. Despite having a small team, the two listed managers boast 22 years of listed portfolio management experience.

People

In a competitive industry, Jacob doesn't differentiate itself enough, leading to an Average Parent Pillar rating. Portfolio management turnover has been minimal at the firm over the past five years. Long-term stability indicates a strong investment culture. On average, Jacob's longest-tenured strategy managers have 20 years of tenure. This level of experience should give investors confidence in the group's ability to handle turbulent market conditions. The Jacob roster of open-end and exchange-traded funds has had below-average risk-adjusted performance, as seen in its average three-year Morningstar Rating of 1.0 stars.

Parent

Jacob Forward ETF

JFWD is actively managed to invest in equity securities of US companies engaged in innovative and disruptive technologies, including those in their early stages of development.

Twitter

Invesco S&P 500 Equal Weight Communication Services ETF

Invesco Dynamic Media ETF

Tesla's founder is now Twitter's largest shareholder. The stock is a holding in 184 ETFs.

Twitter Spikes As Musk Gains Stake

ARK Fintech Innovation ETF

ARK Innovation ETF

ARK Web x.0 ETF

Roundhill Sports Betting & iGaming ETF

iBet Sports Betting & Gaming ETF

Roundhill Meme ETF

An analyst downgrade contributed to the stock's steep decline from previous highs.

DraftKings Down 13%; 87 ETFs Affected

Breakwave Dry Bulk Shipping ETF

Defiance Hotel Airline and Cruise ETF

Aberdeen Standard Physical Palladium Shares ETF 

SonicShares Airlines, Hotels, Cruise Lines ETF

The S&P 500 hit to record close last week thanks to the Santa Clause rally.

Santa Rally Made These ETFs Toppers Last Week

Ryan Jacob's betting that track record can outperform Cathie Wood's hype.

ARKK Competitor ETF Debuts

On Wednesday, Jacob Asset Management (JAM) launched its first exchange traded fund, the Jacob Forward ETF. Shares of the ETF will begin trading today on the New York Stock Exchange (NYSE) under the ticker symbol JFWD.

News for Jacob Forward ETF ETF (JFWD)