Miller Value Ptnrs Appreciation 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 second-cheapest fee quintile among peers.  

 The strategy receives an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in liquidity exposure and momentum exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And momentum exposure is rooted in holding stocks currently on a winning streak. The strategy's industry-standard management team still needs to prove it has a competitive advantage and earns an Average People Pillar rating. Although this strategy's parent firm still has a way to go to be a high-quality steward, it has bright spots like portfolio managers who invest a notable amount in their strategy but could focus on high fees. As a result, the firm obtains a Below Average Parent Pillar.

Analyst Rating

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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. Miller Value Ptnrs Appreciation ETF earns an Average Process Pillar rating. 

The leading factor in the rating is the firm's five-year retention rate of 100% over the period. Management team experience, which averages 42 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 modest success ratio suggests that the firm could do better across its fund lineup.

 This strategy tends to hold smaller, higher-growth companies compared with its average peer in the Large Value Morningstar Category. Looking at additional factor exposure, the fund has held stocks with higher trading volumes compared to Morningstar Category Peers in the past few years. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has also had more exposure to high-momentum stocks in recent years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. During the last few years, this strategy has also tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. In this month, the strategy also had more exposure to the Quality 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 consumer cyclical and industrials relative to the category average by 23.6 and 7.8 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and healthcare, underweight the average by 8.0 and 7.2 percentage points of assets, respectively. The strategy owns 29 securities and is relatively concentrated. Specifically, 58.4% of the fund’s assets are housed within the top 10 holdings, compared with the category’s 27.4% average.

Average

Process

Miller Value Ptnrs Appreciation ETF earns an Average People Pillar rating. The leading factor affecting the rating is the firm's five-year retention rate of 100%. Management team experience, which averages 42 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. Since this is a newly incepted product, more time is needed to monitor the team's capability at executing the strategy.

People

In an increasingly competitive industry, Miller Value falls behind on a number of key metrics, resulting in a Below Average Parent Pillar rating. Aside from the overall view, the firm's portfolio managers have worked to align their interests with investors' by taking a personal stake and investing alongside them. Almost 33% of the firm’s assets are covered by invested managers. Open-end and exchange-traded fund fees are a weakness at the firm, contributing negatively to the rating. On average, the firm charges fees on its funds that are in the most expensive quintile of category peers. With the current market environment of fee compression, this is cause for concern, as investors may flock to alternate asset managers over time to get a better deal. Turnover among Miller Value portfolio management ranks has been low compared to other firms in the past five years. This stability on the personnel front boosts confidence in its staying power.

Below Average

Parent

Miller Value Partners Appreciation ETF

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Miller Value Partners today rolled out its second ETF. The Miller Value Partners Leverage ETF (NYSE Arca: MVPL) implements a unique strategy, primarily investing in other ETFs offering unleveraged or leveraged exposure to the S&P 500 Index.

Miller Value Partners Unveils ETF With Leverage Element

Miller Value Partners today rolled out an actively managed ETF with a concentrated portfolio of stocks that the fund's managers see as undervalued. The Miller Value Partners Appreciation ETF (NYSE Arca: MVPA) seeks out companies with overlooked “intrinsic value.

News for Miller Value Partners Appreciation ETF ETF (MVPA)