Impact Shares NAACP Minority Empwrmt 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 second-lowest fee quintile among peers.  

 The strategy's investment process inspires confidence and earns a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in liquidity exposure and volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The team managing the passive strategy earns the strategy an Average People Pillar rating. The strategy is part of a first-rate parent that has a favorable lineup success ratio, which supports its Above Average Parent Pillar rating. The firm's is hindered by low portfolio manager retention.

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. Impact Shares NAACP Minority Empwrmt ETF earns a High Process Pillar rating. The main contributor to 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 parent firm's five-year risk-adjusted success ratio of 100% also supports the process. 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. Their relatively high success ratio suggests that the firm does well for investors and that this fund may benefit from that. Strong risk-adjusted performance also contributes to the process, as shown by the fund's five-year alpha calculated relative to the category average, which suggests the process was successful over that period.

The investment strategy as stated in the fund's prospectus is:  The investment seeks investment results that, before fees and expenses, track the performance of the Morningstar ®Minority Empowerment Index (the underlying index).  The fund will, under normal circumstances, invest at least 80% of its total assets, plus borrowings for investment purposes (the "80% basket") in component securities of the underlying index ("Component Securities"). The underlying index is designed to measure the performance of large and mid- capitalization companies that are "empowering to minorities, and " and to exhibit risk and return characteristics similar to those of the Morningstar U.S. Large-Mid Cap ® Index. The fund is non-diversified. 

 The portfolio is overweight in technology and communication services relative to the category average by 6.2 and 3.3 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and consumer defensive, underweight the average by 3.0 and 2.5 percentage points of assets, respectively. The strategy owns 204 securities and its assets are more dispersed than peers in the category. In particular, 41.0% of the fund’s assets are concentrated in the top 10 fund holdings, as opposed to the category average's 48.8%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 9% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

High

Process

Impact Shares’s team earns An Average People Pillar rating. The most notable contributor to the rating is its parent firm's five-year success ratio of 100%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The firm's five-year retention rate of 88% also supports the rating. Lastly, the rating is limited by the combined average five-year excess return of each manager, which suggests that the funds they manage have trailed their respective category average.

Average

People

Impact Shares has a strong investment culture as a firm, resulting in an Above Average Parent Pillar rating. Looking at the durability of the firm's product roster, 100% of Impact Shares products have both survived and beaten their respective category median on a risk-adjusted basis over the past five years, as denoted by the firm's five-year risk-adjusted success ratio. A high success ratio indicates good performance and provides insight into a firm’s discipline around investment strategy and product development. Impact Shares management has lacked continuity over the past five years, denoted by higher-than-average portfolio manager turnover, which detracts from the firm's stewardship rating. The longest-tenured managers’ average asset-weighted tenure is slim, four years, compared with peer firms. This contributes negatively to the rating as the current managers have limited experience running strategies at the firm.

Above Average

Parent

Impact Shares NAACP Minority Empowerment ETF 

NACP tracks an index of US large- and mid-cap companies selected and weighted based on social criteria as defined by the NAACP.

DALLAS--(BUSINESS WIRE)--Impact Shares is proud to announce the five year anniversary of its flagship product, the NAACP Minority Empowerment ETF (NYSE: NACP). Launched in July 2018 in partnership with the National Association for the Advancement of Colored People (NAACP), NACP remains the only ETF product on the market that allows investors to allocate capital to U.S. companies with strong racial and ethnic diversity policies in place. NACP tracks the Morningstar Minority Empowerment Index, wh.

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DALLAS--(BUSINESS WIRE)--Impact Shares, the first 501(c)3 nonprofit ETF issuer in the U.S. announced its three flagship ETFs — NACP, WOMN and SDGA — have received 5-Star Overall Morningstar Ratings™ in their respective categories following their three-year anniversaries. “Since day one, our mission at Impact Shares is to transform the way people think about investing,” notes Ethan Powell, CEO of Impact Shares. “The outstanding financial performance of our three flagship funds demonstrates the v

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DALLAS--(BUSINESS WIRE)--Impact Shares, the first 501(c)(3) nonprofit exchange-traded fund platform, is pleased to welcome Marvin Owens, former senior director of economic development at the National Association for the Advancement of Colored People (NAACP), to its team as Chief Engagement Officer. Amid the ongoing fight for racial equality in the U.S., the Impact Shares NAACP Minority Empowerment ETF (NYSE: NACP) has come to the forefront as an important tool for investors to promote racial eq

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The Impact Shares NAACP Minority Empowerment ETF represents an "evolution" in the civil rights organization's corporate advocacy work and a push for transparency in corporate America, says Marvin Owens, senior director of economic programs at the NAACP.

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