Weakness in Return Stacked Bonds & Managed Futs ETF's Process and People Pillar ratings limits this strategy to a Morningstar Medalist Rating of Negative. The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The strategy merits a Below Average Process Pillar rating, after recently upgrading from Low. The longest-tenured manager has a wealth of experience, but other weaknesses limit it to a Below Average People Pillar rating. The strategy's parent organization still has a way to go to reach the industry standard, evidenced by insignificant personal investments from portfolio managers and portfolio managers with limited tenures at the firm. As a result, the firm obtains a Below Average Parent Pillar rating.

Analyst Rating

iShares Core U.S. Aggregate Bond ETF

Morningstar's style-agnostic investment process evaluation looks for strategies that should be able to outperform their Morningstar Category index on a risk-adjusted basis over time. Return Stacked Bonds & Managed Futs ETF earns a Below Average Process Pillar rating.    The process benefits from the firm's five-year retention rate of 88% over the period. However, the rating is limited by being an actively managed strategy. Historical data, like Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons. The number of months that the management team has been running this vehicle together also holds the rating back.

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


The investment seeks long-term capital appreciation.  The fund is an actively-managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing in two complimentary investment strategies, a bond strategy and a managed futures strategy. The fund uses leverage to “stack” the total return of holdings in the fund’s bond strategy together with the potential returns of the fund’s managed futures strategy. Under normal circumstances, the fund will invest at least 80% of its net assets, plus borrowings for investment purposes, and in (a) the bond strategy and (b) the managed futures strategy. The fund is non-diversified.

 This strategy has a modest 2.3% 12-month yield, lower than its average peers' 4.9%. While a lower yield may deliver less income, it also tends to indicate lower credit risk.

Below Average

Process

Return Stacked Bonds & Managed Futs ETF earns a Below Average People Pillar rating. The team benefits from the scale of its portfolio management team. With seven portfolio managers at the helm, the fund is well-staffed. However, the rating is held back 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. The rating is also held back because none of the managers have over $1 million invested in the fund, which would align their interests with fundholders.


Adam Donald Butler, the longest-tenured manager on the strategy, provides strong guidance, bringing forward 12 years of listed portfolio management experience.

People

In an increasingly competitive industry, Newfound falls behind on a number of key metrics, resulting in a Below Average Parent Pillar rating. Newfound fails to live up to one of the hallmarks of stewardship, manager investment, to help align portfolio manager and shareholder interests. None of the firm’s assets are covered by an invested manager. Longest-tenured managers’ average asset-weighted tenure within the firm is slim, one year, compared with peer firms. This contributes negatively to the rating, as the current managers have limited experience running strategies at the firm. Newfound has had high portfolio management turnover over the past five years compared with peers, detracting from its rating, as long-term stability tends to go together with positive results.

Parent

Return Stacked Bonds & Managed Futures Etf

RSBT is an actively managed fund that holds a bond portfolio while utilizing a managed futures strategy. The fund uses leverage to stack the total return of its bond holdings with the potential returns of the managed futures.

Manager Directed Portfolios - iM DBi Managed Futures Strategy ETF

KFA Mount Lucas Index Strategy ETF

Three of my favorite 9+% yielding ETFs had a terrible month due to the end of the worst bond bear market in U.S. history. Inflection points can be painful for this asset class because it takes two to three months for them to catch a new trend.

Three 9+% Yielding ETFs I Own, And So Should You

Autodesk

Amazon

ASML Hld

Brookfield Asset Management

British American Tobacco

Vanguard Extended Duration Treasury ETF

Lowe's

Mastercard

NextEra Energy

Invesco Russell 1000 Dynamic Multifactor ETF

Philip Morris

Schwab US Dividend Equity ETF

Schwab U.S. Large-Cap Growth ETF

Invesco S&P 500 GARP ETF

Vanguard Dividend Appreciation ETF

World-beater blue chips are the best way for regular people like you and me to achieve our financials dreams. Over 50 years of market data shows there is an optimal asset allocation for earning good to great yield, great returns, and minimizing volatility during recessions and bear markets.

18 World-Beater Blue Chips For The Ultimate High-Yield Retirement Portfolio

Diversification can help boost yield, long-term returns, maximize income growth, and reduce volatility in even the most extreme market crashes. Bonds and managed futures are the best hedging strategy in history, never failing since 1980.

News for Return Stacked Bonds & Managed Futures Etf ETF (RSBT)