Weakness in Cabana Target Drawdown 10 ETF's People and Process Pillar ratings limits this strategy to a Morningstar Medalist Rating of Negative. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's management team is about as experienced as others, but due to other weaknesses, the strategy earns a Low People Pillar. The strategy earns a Below Average Process Pillar rating.  The strategy's parent organization is industry standard, albeit with some strong attributes like overall reasonable fees, but is held back by an unsuccessful risk-adjusted track record. This earns the firm an Average Parent Pillar rating.

Analyst Rating

Invesco Nasdaq 100 ETF

Health Care Select Sector SPDR Fund

iShares Select Dividend ETF

Energy Select Sector SPDR Fund

Utilities Select Sector SPDR Fund

iShares Commodity Optimized Trust

Technology Select Sector SPDR Fund

Consumer Staples Select Sector SPDR Fund

Vanguard Large-Cap ETF

iShares Latin America 40 ETF

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. Cabana Target Drawdown 10 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 the experience of the management team, which averages six years at this fund. The fund's relatively concentrated portfolio detracts from the process, with its top 10 holdings accounting for 95% of assets. Concentration can lead to outperformance, but it amplifies the risk of a blowup.

 Its equity holdings are not distinguished from peers in terms of value-growth and size exposure. The strategy has three region or sector biases compared to category peers. The most notable is its consistent underexposure to the Developed Europe region. It also sustains an underweight position in the financial services sector. And finally, in the fund's most recent portfolio, more assets were allocated to developed markets regions. Although, this bias has not existed over time. 

 The portfolio is overweight in real estate and financial services relative to the category average by 18.6 and 10.1 percentage points, respectively. The sectors with low exposure compared to category peers are technology and healthcare, underweight the average by 10.2 and 7.4 percentage points of assets, respectively. The portfolio is overweight in North America by 15.9 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 6.0 percentage points and 2.7 percentage points, respectively.

 In the portfolio's fixed-income allocation, credit and interest rate risk exposures are more significant than those of comparable strategies. More explicitly, the strategy has an average credit rating of BB versus the category average's A and has a longer average duration of 5.6 years to the average’s 4.1 years.

Below Average

Process

Cabana Target Drawdown 10 ETF earns a Low People Pillar rating. The primary factor affecting the rating is the experience of the management team, which averages six years at this fund. The combined average five-year excess return of each manager also holds the team back. It suggests that the funds they manage have fallen short of their respective category's average return. The instability of management across its parent firm further limits the team. The firm's asset-weighted manager tenure of 68 years suggests that it could do more to retain portfolio managers.


None of the portfolio managers here invest in this fund. This hurts the rating because manager investment would align their interests with the strategy's investors.

People

Cabana is an industry-standard asset manager, leading to an Average Parent Pillar rating. One notable advantage of Cabana is its below-average fees. On average, the firm's open-end and exchange-traded fund fees fall in the second-cheapest quintile of category peers. The firm's risk-adjusted performance is poor. Across all open-end and exchange-traded products, the firm’s average three-year Morningstar Rating is 2.0 stars. The firm has not had a durable product lineup. Specifically, its three-year success ratio demonstrates that only 0% of products were both able to survive and beat their respective category median. A low success ratio indicates poor performance and raises questions about a firm’s discipline around investment strategy and product development.

Average

Parent

Cabana Target Drawdown 10 ETF

TDSC is an actively managed fund-of-funds which aims to provide long-term growth that adjusts an asset allocation to pursue a targeted risk parameter of 10% from peak to trough.

Cabana Target Leading Sector Aggressive ETF

Cabana Target Leading Sector Conservative ETF

Cabana Target Leading Sector Moderate ETF

iShares U.S. Fixed Income Balanced Risk Factor ETF

iShares High Yield Bond Factor ETF

iShares Investment Grade Bond Factor ETF

iShares North American Tech-Multimedia Networking ETF

Invesco Raymond James SB-1 Equity ETF

SPDR S&P 500 ETF Trust

Cabana Target Drawdown 13 ETF

iShares USD Bond Factor ETF

VictoryShares Free Cash Flow ETF

Alpha Blue Capital US Small-Mid Cap Dynamic ETF

VictoryShares Small Cap Free Cash Flow ETF

Texas Capital Texas Small Cap Equity Index ETF

FT Cboe Vest US Equity Moderate Buffer ETF-Decemebr

iShares U.S. Digital Infrastructure and Real Estate ETF

FT Cboe Vest US Equity Buffer & Premium Income ETF - December

The last full week of the year was a busy one, with 18 new ETFs launching. Among the rolled-out funds were offerings from Texas Capital, PlanRock, PGIM, John Hancock, SP Funds, Bancreek, KB Asset Management, ProShares, and WisdomTree.

This Week in ETFs: VictoryShares Adds Small-Cap FCF Fund

Cabana Target Drawdown 7 ETF

FAYETTEVILLE, Ark.--( BUSINESS WIRE )--Cabana Asset Management (“Cabana”), a wholly owned subsidiary of The Cabana Group, LLC and an SEC registered investment adviser providing risk-managed investment portfolios to registered investment advisors (“RIAs”) and individual investors, today announced plans to transfer its two suites of Exchange Traded Funds (“ETFs”) from NYSE to Nasdaq on or about December 12, 2022. The last day of trading on NYSE will be December 9, 2022. Investors in the funds should not expect to see any impact on their trading experience as a result of the transfer.

Cabana Asset Management Announces Transfer of ETF Lineup to Nasdaq

JPMorgan BetaBuilders U.S. Mid Cap Equity ETF

Global X Telemedicine & Digital Health ETF

Rarely is it a dull year in the exchange traded funds industry and 2020 was no exception. Among the many records set last year in ETF Land were closures and launches.

3 New ETFs For 2021: Rookies Ready To Come Of Age

News for Cabana Target Drawdown 10 ETF ETF (TDSC)