WealthTrust DBS Long Term Growth ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The strategy receives an 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 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 strategy's industry-standard management team still needs to prove it has a competitive advantage and earns an Average People Pillar rating. The strategy's parent organization doesn't stand out, earning the firm an Average Parent Pillar rating. It has displayed a handful of investor-friendly attributes including low portfolio manager turnover and overall reasonable fees.

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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. WealthTrust DBS Long Term Growth ETF earns an Average Process Pillar rating. 

The primary contributor to the rating is the firm's five-year retention rate of 100% over the period. Management team experience, which averages 21 years at this fund, also strengthens the process. Lastly, the process is limited by being an actively managed strategy. Historical data, like Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

 This strategy targets smaller plays than its peers’ average in the Large Blend Morningstar Category. But in terms of investment style, it is on par with peers. Looking at additional factor exposure, this strategy has held more highly liquid stocks compared to Morningstar Category Peers in the past few years. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. This orientation tends to pay off most prominently when markets are hot. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. Additionally, this strategy has demonstrated a preference for high-momentum stocks in these years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. In this month, the strategy also had more exposure to the Momentum 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 consumer cyclical and communication services relative to the category average by 10.9 and 7.9 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and industrials, underweight the average by 9.0 and 5.3 percentage points of assets, respectively. The portfolio is composed of 33 holdings and is relatively top-heavy. Of the strategy's assets, 56.8% are concentrated within the top 10 holdings, as opposed to the category’s 49.5% average. And in closing, in terms of portfolio turnover, this portfolio trades more frequently than the average peer in its category, which may result in higher trading costs for investors and cause a drag on performance.

Average

Process

WealthTrust DBS Long Term Growth ETF earns an Average People Pillar rating. The leading factor influencing the rating is the firm's five-year retention rate of 100%. Management team experience, which averages 21 years at this fund, also influences the rating. Lastly, the rating is limited by the managers' failure to consistently outperform peers at the funds they run, as measured by their combined three-year manager excess returns.

People

WealthTrust's track record as a steward is mixed, leading to an Average Parent Pillar rating. Portfolio management turnover has been minimal at the firm over the past five years. Long-term stability indicates a strong investment culture. The firm charges fees on open-end and exchange-traded funds that are on par with category peers. On average, fees are within the middle quintile, giving it neither an advantage nor disadvantage compared with the competition. Average asset-weighted tenure of seven years among the longest-tenured managers at WealthTrust is on par with peer firms. In isolation, seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions.

Parent

WealthTrust DBS Long Term Growth ETF

WLTG allocates its exposure between equity and tactical defensive sleeves utilizing a trend analysis model and quantitative process. The fund is actively managed.

The actively managed WealthTrust DBS Long Term Growth ETF (WLTG) launched today, with the goal of long-term capital growth as a core allocation, and a secondary goal of providing dividend income. According to the prospectus, “The Fund's investment strategy is based on the belief that long term superior performance of a portfolio is driven by [.

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