RH Tactical Outlook ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The strategy earns an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in the Europe-Developed region and an overweight in developed markets regions compared with category peers. The strategy's industry-standard management team still needs to prove it has a competitive advantage and earns an Average People Pillar rating. The strategy's parent organization is industry standard, albeit with some strong attributes like continuity among portfolio managers, but is held back by a pricey fund lineup. This earns the firm an Average Parent Pillar rating.

Analyst Rating

SPDR S&P 500 ETF Trust

SPDR Portfolio Mid Cap ETF

iShares Russell 2000 ETF

SPDR Gold Trust

iShares Silver Trust

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. RH Tactical Outlook 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. The stability of the management team also supports the rating. Specifically, the fund has not seen a manager change in the last 12 years. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 25%. 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 is overweight in stocks compared with its peers with a 92% weighting, versus the Tactical Allocation category’s average of 46%. Its equity sleeve is consistently tilted toward both smaller market-cap and growth-oriented stocks versus the category average. The strategy has three region or sector biases compared to category peers. The most meaningful is its consistent underweight in the Developed Europe region. It also routinely positions more assets in developed markets regions. And finally, in the fund's most recent portfolio, more assets were allocated to the consumer cyclical sector. Although, this bias has not been consistent over time. 

 The portfolio is overweight in industrials by 2.5 percentage points in terms of assets compared with the category average, and its consumer cyclical allocation is similar to the category. The sectors with low exposure compared to category peers are technology and communication services, with technology underweighting the average portfolio by 3.3 percentage points of assets and communication services similar to the average. The portfolio is overweight in North America by 16.6 percentage points compared with the category average, and Emerging Europe's allocation is similar to its peers. The regions with low exposure compared to their category peers are Developed Europe and Japan, underweight the average by 6.5 percentage points and 2.7 percentage points, respectively.

Average

Process

RH Tactical Outlook 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 influences the rating. Specifically, the fund has not seen a manager change in the last 12 years. Lastly, the rating is limited by the parent firm's five-year success ratio of 25%. 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 relatively low success ratio suggests that the firm could do better across its fund lineup.

People

Adaptive ETF's track record as a steward is mixed, leading to an Average Parent Pillar rating. The firm has proven successful at holding onto portfolio management talent, providing continuity for strategies, as displayed by low turnover in the past five years compared with asset management peers. The firm charges fees on its open-end and exchange-traded funds that are on par with category peers. On average, fees on its funds are within the middle quintile, giving it neither an advantage nor disadvantage compared with the competition. Looking at the firm's risk-adjusted performance, its fund lineup compares similarly to competitors. Across its open-end and exchange-traded funds, the firm's average three-year Morningstar Rating is 2.8 stars.

Parent

RH Tactical Outlook ETF

RHTX actively manages ETFs and funds that provide exposure to equities and fixed income securities, aiming for total return and downside protection.

AI Quality Growth ETF

RH Tactical Rotation ETF

The Nottingham Company, a consultant for mutual funds and ETFs and an ETF administrator, has launched three actively managed ETFs that are conversions from open-end mutual fund strategies. The three funds, the AI Quality Growth ETF (AQGX), the RH Tactical Outlook ETF (RHTX), and the RH Tactical Rotation ETF (RHRX), were listed on the NYSE [.

Nottingham Announces Three Mutual Fund to ETF Conversions

The asset allocation ETFs carry expense ratios above 1% and 2%.

News for RH Tactical Outlook ETF ETF (RHTX)