Themes US Small Cp CA Flw Champ ETF retains its Morningstar Medalist Rating of Bronze. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in liquidity exposure and momentum exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And momentum exposure is rooted in holding stocks currently on a winning streak. The team managing this passive strategy earns a Below Average People Pillar rating. The strategy's parent organization is industry standard, albeit with some strong attributes like modest portfolio manager turnover, but is held back by relatively short-tenured portfolio managers. This earns the firm an Average Parent Pillar rating.

Analyst Rating

Williams-Sonoma

Molina Healthcare

Builders FirstSource

Marathon Oil

CF Industries Holdings

Reinsurance Group of America

Toll Brothers

Flex

East West Bancorp

Antero Resources

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. Themes US Small Cp CA Flw Champ ETF earns an Above Average Process Pillar rating. The most significant contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 100% also underpins the rating. Lastly, the process is limited by the experience of the management team, which averages three months at this fund.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the performance, before fees and expenses, of the Solactive U.S. Small Cap Cash Flow Champions Index.  The index is a free-float adjusted, market capitalization weighted index that is designed to provide exposure to small capitalization U.S. companies that have a high cash flow yield. The fund will invest, under normal circumstances, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, and in the securities that comprise the index. The fund is non-diversified. 

 The portfolio is overweight in energy and financial services relative to the category average by 16.3 and 6.0 percentage points, respectively. The sectors with low exposure compared to category peers are technology and real estate, underweight the average by 5.9 and 5.8 percentage points of assets, respectively. The portfolio is composed of 77 holdings and is relatively top-heavy. Of the strategy's assets, 36.7% are concentrated within the top 10 holdings, compared to the typical peer's 28.9%.

Above Average

Process

Themes ETF Trust’s team receives a Below Average People Pillar rating. The team benefits from the firm's five-year retention rate of 100%. However, the rating is held back by the experience of the management team, which averages three months at this fund. The number of months that the management team has been running this vehicle together also holds the rating back. Since this is a newly incepted product, more time is needed to monitor the team's capability at executing the strategy.

Below Average

People

Even though Themes ETF Trust's limited history of three months as a firm is working against its rating, they've proven to be an industry-standard steward, warranting an Average Parent Pillar rating. The firm currently manages 21 vehicles, with a total of $28.5 million under management across a bench of two strategy managers. As a new firm, there is very low manager industry experience--on average, less than six months. The firm's earliest portfolio manager hire, Dingxun(kevin) Shao, has only one year of industry experience. 
 
   

 As Themes ETF Trust builds and continues to develop a track record, its rating will be adjusted accordingly.

Average

Parent

Themes US Small Cap Cash Flow Champions ETF

SMCF tracks a market cap-weighted index of 75 US small-cap companies identified to have high cash flow yield.

Themes Airlines ETF

Themes Gold Miners ETF

Themes Cloud Computing ETF

Themes Natural Monopoly ETF

Themes European Luxury ETF

Themes Global Systemically Important Banks ETF

Themes Cybersecurity ETF

Themes US Cash Flow Champions ETF

Themes US R&D Champions ETF

Themes Generative Artificial Intelligence ETF

Priced at 0.35%, over 40% below the average expense ratio charged by other thematic funds, Themes ETFs seeks to provide investors with targeted thematic exposure at low costs.1 NEW YORK , Dec. 8, 2023 /PRNewswire/ -- Themes ETFs  debuts in the US market with the launch of 7 funds in its suite of low-cost thematic ETFs, which will begin trading on the Nasdaq over the coming weeks. With expense ratios priced at 0.35%, the company's 7 thematic funds are 40% cheaper than the average expense ratio of 0.60% charged by other thematic ETFs.1 Ticker Thematic Fund Name Expense Ratio GSIB Themes Global Systemically Important Banks ETF 0.35 % WISE Themes Generative Artificial Intelligence ETF 0.35 % CLOD Themes Cloud Computing ETF 0.35 % FINE Themes European Luxury ETF 0.35 % SPAM Themes Cybersecurity ETF 0.35 % AUMI Themes Gold Miners ETF 0.35 % AIRL Themes Airlines ETF 0.35 % 1 Source: ETF.com, Universe of 318 Theme Investing ETFs, as of 30 November 2023 Alongside its thematic offering, the company is also launching 4 low-cost fundamental ETFs.

Themes ETFs Launch with Expense Ratios 40% Below the Category Average

News for Themes US Small Cap Cash Flow Champions ETF ETF (SMCF)