Neuberger Berman Commodity Stgy 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 sizable cost advantage over competitors, priced within the second-lowest fee quintile among peers.  

 The strategy's sensible investment philosophy earns it an Above Average Process Pillar rating. The strategy's longest-tenured manager is experienced, but still gets an Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

Morningstar's evaluation of this fund's process seeks to understand management's investment philosophy, and whether it has been applied consistently over time and can add value across the market cycle. Neuberger Berman Commodity Stgy ETF earns an Above Average Process Pillar rating. The leading factor in the rating is the fund's impressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process was successful over that period. The stability of the management team also bolsters the rating. Specifically, the fund has not seen a manager change in the last 12 years. Lastly, the process is limited by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.9 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

The investment strategy as stated in the fund's prospectus is as follows: 

 The investment seeks total return.  The fund seeks to achieve its goal by investing under normal circumstances in commodity-linked derivative instruments and fixed income instruments. Commodities are assets such as oil, natural gas, agricultural products or metals. The fund’s fixed income investments will be primarily in investment grade fixed income securities and are intended to provide liquidity and preserve capital and may serve as collateral for the fund’s derivative instruments.

Above Average

Process

Neuberger Berman Commodity Stgy ETF earns an Average People Pillar rating. The main contributor to the rating is the portfolio managers' outperformance of peers at the funds they run, as measured by their combined three-year manager excess returns. Management team experience, which averages 16 years at this fund, also influences the rating. Lastly, the rating is limited by the parent firm's five-year success ratio of 42%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.


The team's personal investments in the fund are insignificant, with the maximum investment by any one manager being between $10,000 and $50,000. That amount is too small to help align managers' interests with the fund's investors.

Average

People

Neuberger Berman's demonstrated investment capabilities and favorable ownership structure make it a quality steward of capital and earn it an Above Average Parent rating.
The firm has come a long way since its origin as a value-equity shop under Roy Neuberger in 1939. Many of its distinct fixed-income and equity portfolio management teams are long-standing mainstays, but the firm has methodically added to its investment capabilities, creating a more diversified product suite. In November 2020, for example, the firm added a seven-member global-equity team from NN Investment Partners. Deep supporting resources and thoughtful succession planning have facilitated smooth manager transitions, including one currently in process on flagship Neuberger Berman Genesis. Meanwhile, an ongoing initiative to build a mutual fund business in China demonstrates the firm's commitment to expanding its global reach opportunistically.
CEO George Walker is heavily involved in vetting prospective investment teams, though these additions have slowed as the product lineup has matured. Firm ownership and alignment with fundholders are foundational to the culture. One fourth of employees (including many senior investment decision-makers) have stakes in the employee-owned firm, creating shared ownership in the firm's success.

Parent

Neuberger Berman Commodity Strategy ETF

NBCM is actively managed to provide long and short exposure to the broad commodity market. The fund utilizes a subsidiary to invest in commodity-linked derivative instruments.

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