V-Shrs MSCI Wld ESG Mtrlty&CarbTrnstnETF retains its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable 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 an overweight in liquidity exposure and volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The team managing this passive strategy earns a Below Average People Pillar rating. The strategy belongs to a strong firm that earns an Above Average Parent Pillar rating. The firm, for example, has had overall attractive fees and minimal portfolio manager turnover.

Analyst Rating

Microsoft

NVIDIA

Amazon

UnitedHealth Group

Procter & Gamble

salesforce.com

Coca-Cola

PepsiCo

Shell PLC

AstraZeneca

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. V-Shrs MSCI Wld ESG Mtrlty&CarbTrnstnETF earns an Above Average Process Pillar rating. The main driver of the rating is that this fund tracks an index. Historical data, like 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 strengthens the process. Lastly, the process is limited by the size of its portfolio management team, only two portfolio managers.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the investment results, before fees and expenses, of the MSCI World ESG Materiality and Carbon Transition Select Index.  Under normal market conditions, the fund will invest at least 80% of its net assets (plus borrowings for investment purposes) in companies included in the index. The index is designed to represent the performance of the equity securities of companies in developed markets, including the United States and Canada, and assessed to be sector leaders in the global transition to low carbon emissions. The fund is non-diversified. 

 The portfolio is overweight in technology by 6.6 percentage points in terms of assets compared with the category average, and its real estate allocation is similar to the category. The sectors with low exposure compared to category peers are industrials and basic materials, with industrials underweighting the average portfolio by 3.4 percentage points of assets and basic materials similar to the average. The strategy owns 252 securities and is relatively concentrated. In particular, 30.1% of the fund’s assets are housed within the top 10 holdings, compared with the category’s 24.1% average. And finally, in terms of portfolio turnover, this portfolio turns over its holdings less quickly than peers, potentially leading to lower costs for investors and eliminating a drag on performance.

Above Average

Process

V-Shares’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: Austin Wen, Rafael Zayas. Experience on the team is abundant, with 10 years of average portfolio management experience. Together, they manage a total of nine strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.

Below Average

People

Even though V-Shares has only existed for one year, it stacks up against more-senior asset managers. As a result, it earns an Above Average Parent Pillar rating. V-Shares currently oversees two vehicles, with a total of $4.0 million under management and a roster of two fund managers. As a small group, this management team is quite accomplished with about 11 years of average total industry experience.  

 A pocket of strength is the firm’s inexpensive fees on its open-end and exchange-traded funds, demonstrating a firmwide commitment to minimizing costs and maximizing investors’ returns. The average net expense ratio of its funds is within the cheapest quintile of firms.  

 To retain a positive rating, V-Shares will be expected to uphold a consistent track record of positive investor experience.

Parent

V-Shares MSCI World Esg Materiality And Carbon Transition ETF

VMAT tracks an index of large- and mid-cap developed market stocks that are selected based on ESG criteria, aligned with the Sustainability Accounting Standard Board (SASB). The portfolio is weighted in favor of low carbon emissions.

New fund tracks an MSCI index covering developed market companies well-positioned to deal with the transition to a low-carbon economy.

V-Square Debuts Carbon Transition ETF

CHICAGO--(BUSINESS WIRE)---- $VMAT #Climate--Chicago based V-Square Quantitative Management LLC (V-Square), a global asset management firm with sustainability at its core, announced today that it has expanded its market-leading capabilities with the launch of its second thematic ETF the V-Shares MSCI World ESG Materiality and Carbon Transition ETF (VMAT). Tracking the MSCI World ESG Materiality and Carbon Transition Select Index, the fund represents the performance of companies which are assessed to be sector lea

News for V-Shares MSCI World Esg Materiality And Carbon Transition ETF ETF (VMAT)