The combination of a middling Process Pillar rating and a Below Average People Pillar rating limit  Timothy Plan US Large/Mid Cp Cr Enh ETF to a Morningstar Medalist Rating of Neutral.  The portfolio maintains a cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The strategy’s management team earns a Below Average People Pillar rating. The People Pillar rating is indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following the pillar section for more details. The strategy gets an Average Process Pillar rating.  Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And a high quality exposure is rooted in holding stocks that are consistently profitable, growing, and have solid balance sheets. The strategy's parent organization still has a way to go to reach the industry standard, evidenced by a lack of inside investments from portfolio managers and unattractive fees. As a result, the firm obtains a Low Parent Pillar rating.

Analyst Rating

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Verisk Analytics

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Timothy Plan US Large/Mid Cp Cr Enh ETF earns an Average Process Pillar rating. The most substantial 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. A low expense ratio also contributes to the process, with fees ranking in its category's second-cheapest fifth. A higher expense ratio reduces net returns, so being affordable gives this fund a considerable advantage. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 33%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to provide investment results that track the performance of Victory US Large/Mid Cap Long/Cash Volatility Weighted BRI Index before fees and expenses.  The fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets directly or indirectly in the securities included in the index, an unmanaged, and volatility weighted index created by the Sub‑Advisor. The index combines fundamental criteria with individual security risk control achieved through volatility weighting of individual securities. 

 The portfolio is overweight in utilities and industrials relative to the category average by 5.1 and 5.1 percentage points, respectively. The sectors with low exposure compared to category peers are real estate and financial services, underweight the average by 5.6 and 4.9 percentage points of assets, respectively. The portfolio is composed of 296 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 5.5% of the fund’s assets were concentrated in the top 10 fund holdings, compared to the category’s 15.4% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 302% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

Timothy Plan’s team could be improved and displays a disappointing track record, resulting in a Below Average People Pillar rating. There are two managers listed on the fund: Mannik Dhillon, Free Foutz. Together, they manage a total of 10 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

Below Average

People

Timothy Plan lags peer asset managers in a number of stewardship qualities, resulting in a Low Parent Pillar rating. Portfolio managers at Timothy Plan tend not to invest alongside their shareholders, detracting from the overall stewardship assessment. None of the firm’s assets are covered by an invested manager. Open-end and exchange-traded fund fees are a weakness at the firm, contributing negatively to the rating. On average, the firm charges fees on its funds that are in the second most-expensive quintile of category peers. With the current market environment of fee compression, this is cause for concern, as investors may flock to alternate asset managers over time to get a better deal. The longest-tenured managers’ average tenure within the firm is 10 years, bringing a wealth of knowledge through multiple market cycles to the table and contributing positively to the rating.

Parent

Timothy Plan US Large/Mid Cap Core Enhanced ETF

TPLE tracks a volatility-weighted index of US large-cap stocks screened for Christian values.

Timothy Plan High Dividend Stock ETF

Timothy Plan High Dividend Stock Enhanced ETF

Timothy Plan US Large/Mid Cap Core ETF

Timothy Plan Market Neutral Etf

Timothy Partners Ltd. has launched the seventh “biblically responsible” exchange-traded fund within its Timothy Plan family of mutual funds and ETFs.

Timothy Plan Launches “Biblically Responsible” Market Neutral ETF

On Thursday, Timothy Plans, a faith-based investment company, announced the launch of two new ETFs, the Timothy Plan High Dividend Stock ETF (TPHE) and the Timothy Plan US Large/Mid Cap Core Enhanced ETF (TPLE). The ETFs are designed to allow investment opportunities that capitalize on dividend return (TPHE) or general market exposure (TPLE) while also protecting [.

News for Timothy Plan US Large/Mid Cap Core Enhanced ETF ETF (TPLE)