Weakness in ClearShares Ultra-Short Maturity ETF's Process and People Pillar ratings limits this strategy to a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy earns a Below Average Process Pillar rating. The strategy suffers from its inexperienced portfolio management team. This largely drives the strategy's Below Average People Pillar rating. The strategy's parent organization is industry standard, albeit with some strong attributes like a competitive risk-adjusted track record, but is held back by a bench of limited-tenure portfolio managers. This earns the firm an Average Parent Pillar rating.

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. ClearShares Ultra-Short Maturity ETF earns a Below Average Process Pillar rating.    The process is strengthened by the fund's excellent long-term risk-adjusted performance. This can be seen in its five-year information ratio calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. However, the rating is limited by the parent firm's five-year retention rate of 50%, which suggests it could do more to retain its portfolio managers. Management team experience, which averages four years at this fund, also weakens the process.

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


The investment seeks current income.  The fund is an actively-managed exchange-traded fund ("ETF") that seeks to achieve its investment objective primarily by investing in repurchase agreements collateralized by U.S. government securities. It is not a money market fund and does not seek to maintain a stable net asset value ("NAV") of $1.00 per share.

 This strategy's 12-month yield is 5.2%, higher than its average peer's 4.7%. Plus, its 30-day SEC yield (a measure similar to yield-to-maturity) sits at 5.3%. Higher yields tend to indicate higher credit risk.

Below Average

Process

ClearShares Ultra-Short Maturity ETF earns a Below Average People Pillar rating. The team is supported by the stability of the management team. Specifically, the fund has not seen a manager change in the last four years. However, the rating is limited by the instability of talent across its parent firm. The firm's asset-weighted manager tenure of four years suggests it could do more to retain portfolio managers. Management team experience, which averages four years at this fund, also detracts from the team.

People

In a competitive industry, ClearShares doesn't differentiate itself enough, leading to an Average Parent Pillar rating. With an average three-year Morningstar Rating of 4.3 stars across its open-end and exchange-traded products, the firm has demonstrated its ability to deploy capital successfully for investors. ClearShares's longest-tenured managers do not possess the same experience as management teams at other firms, a detractor from its rating. Specifically, average tenure within the firm is only three years. ClearShares has faced above-average manager turnover in the past five years. This is a concern, as long-term stability tends to support positive results.

Average

Parent

ClearShares Ultra-Short Maturity ETF

OPER is an actively managed portfolio seeking current income by investing primarily in repurchase agreements, with a portfolio maturity of less than one year.

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The market is showing signs of weakness and lacks sustainable upside momentum. The recent sell-off has broken key moving averages, indicating a potential shift in market sentiment.

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News for ClearShares Ultra-Short Maturity ETF ETF (OPER)