Weakness in Hypatia Women CEO ETF's People and Process Pillar ratings limits this strategy to a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the second-lowest fee quintile among peers.  

 The team managing the strategy earns a Below Average People Pillar. The strategy gets a Below Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in momentum exposure and quality exposure compared with category peers. Momentum is the premise that stocks that have recently outperformed will continue to do so. With low momentum exposure, the portfolio is holding stocks that managers believe to be undervalued. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The strategy's parent organization is industry standard, albeit with some strong attributes like high portfolio manager retention, but is held back by a bench of limited-tenure portfolio managers. This earns the firm an Average Parent Pillar rating.

Analyst Rating

Oil States International

Occidental Petroleum

International Seaways

Workiva

Arista Networks

Advanced Micro Devices

Steelcase

Accenture Plc

SecureWorks Corp.

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. Hypatia Women Ceo ETF earns a Below Average Process Pillar rating. 

The process is bolstered by the firm's five-year retention rate of 100% over the period. However, the rating is weakened by the experience of the management team, which averages seven months at this fund. The small size of its portfolio management team of one also holds the process back.

 This strategy prefers more value-oriented stocks compared with the average fund in its peer group, the Small Blend Morningstar Category. But in terms of market capitalization, it is on par with peers. Looking at additional factor exposure, this strategy has consistently had low exposure to momentum stocks in the past few years. Momentum strategies typically bet that stocks that have recently outperformed will continue to do so, and those that have recently underperformed will keep lagging. Avoiding the former and buying the latter could indicate that managers are averse to chasing momentum. In the latest month, the strategy was also less exposed to the Momentum factor compared with Morningstar Category peers. The strategy has also had a defensive tilt, demonstrated by lower exposure to the quality factor than peers in recent years. This means the fund has avoided holding companies that are consistently profitable, growing, and have solid balance sheets. Such positions do not tend to provide much ballast for a portfolio. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. Additionally, the managers have consistently taken on more risk, demonstrated by higher volatility exposure than peers. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. In this month, the strategy also had more exposure to the Volatility factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in technology by 3.3 percentage points in terms of assets compared with the category average, and its consumer cyclical allocation is similar to the category. The sectors with low exposure compared to category peers are healthcare and industrials, with healthcare underweighting the average portfolio by 2.8 percentage points of assets and industrials similar to the average. The strategy owns 128 securities and is diversified among those holdings. In its most recent portfolio, 16.6% of the fund’s assets were concentrated in the top 10 fund holdings, compared to the category average's 25.7%.

Below Average

Process

Hypatia Women Ceo ETF earns a Below Average People Pillar rating. The team is supported by the firm's five-year retention rate of 100%. However, the rating is limited by the experience of the management team, which averages seven months at this fund. The instability of its management team also weakens the team. The fund last saw a manager change seven months ago.

People

A short track record, in this case only seven months, is usually cause for caution when evaluating asset managers. However, Hypatia has displayed qualities that suggest it can be trusted as much as the next asset manager, earning it an Average Parent Pillar rating. The firm currently manages one vehicle, with a total of $2.6 million under management and only one portfolio manager. Patricia Lizarraga is unseasoned as a portfolio manager, with less than a year in the industry. There's reason to be cautious until they grow more experienced.  
 
   

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

Average

Parent

Hypatia Women CEO ETF

WCEO seeks capital appreciation through an actively managed stock portfolio of US companies that are led by a female Chief Executive Officer.

SPDR SSGA Gender Diversity Index ETF

Impact Shares YWCA Women's Empowerment

Did you know that some large-cap, blue-chip companies like Accenture (ACN) (run by Julie Sweet), Northrop Gruman (NOC) (Kathy Warden), Oracle (ORCL) (Safra Catz), Occidental Petroleum (OXY) (Vicki Hollub), and Progressive (PRGR) (Tricia Griffith) have a female CEO? There are also female CEOs of small- and mid-sized companies like Exponent (EXPO) (Catherine Ford Corrigan), Oil

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Exchange-traded funds are baskets of securities that offer you less risk, enable you to track particular indexes or market sectors, and can be purchased on exchanges.

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Hypatia's first exchange-traded fund, WCEO, will track companies that have women executives.

New ETF Bets on Female CEOs

Fund to Invest in Companies Led by a Female Chief Executive Officer or Board Chair NEW YORK , Jan. 10, 2023 /PRNewswire/ -- Hypatia Capital Management LLC announced the launch of a new exchange traded fund yesterday, the Hypatia Women CEO ETF (NYSE: WCEO). Hypatia Women CEO ETF (the "Fund") seeks to provide capital appreciation.

Hypatia Announces Launch of Exchange Traded Fund - Hypatia Women CEO ETF

Hypatia Capital, an asset management firm focused on sponsoring female CEOs and investors, has launched the Hypatia Women CEO ETF (NYSE Arca: WCEO), an actively managed exchange traded fund that invests in all publicly traded U.S. companies that have female CEOs.

News for Hypatia Women CEO ETF ETF (WCEO)