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Overview
Hennessy Stance ESG ETF
Actively managed, the Fund seeks to achieve long-term capital appreciation.
Information about the Hennessy Stance ESG ETF (the “Fund”), a semi-transparent actively managed exchange-traded fund ("ETF") with a Portfolio Reference Basket structure:
The Fund is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. The Fund will not. This may create additional risks for your investment. For example:
- You may have to pay more money to trade the Fund’s shares. The Fund will provide less information to traders, who tend to charge more for trades when they have less information.
- The price you pay to buy Fund shares on an exchange may not match the value of the fund’s portfolio. The same is true when you sell shares. These price differences may be greater for the Fund compared to other ETFs because it provides less information to traders.
- These additional risks may be even greater in bad or uncertain market conditions.
- The Fund will publish on its website each day a “Portfolio Reference Basket” designed to help trading in shares of the Fund. While the Portfolio Reference Basket includes all the names of the Fund’s holdings, it is not the Fund’s actual portfolio.
The differences between the Fund and other ETFs may also have advantages. By keeping certain information about the Fund portfolio secret, the Fund may face less risk that other traders can predict or copy its investment strategy. This may improve the Fund’s performance. If other traders are able to copy or predict the Fund’s investment strategy, however, this may hurt the Fund’s performance.
For additional information regarding the unique attributes and risks of the Fund, see the Prospectus and SAI.
Ticker
STNCDaily NAV
as of 7/26/24$29.71Daily NAV % Change
0.54%Daily Price
as of 7/26/24$29.66Daily Price % Change
0.51%
Read the Press Release
Why Invest?
- Actively managed ETF strategy that combines ESG and Machine Learning/Artificial Intelligence (ML/AI) in a tax-efficient ETF structure
- Exposure to companies that score well on ESG metrics and that the Portfolio Managers believe will outperform based on ML/AI models
- Strategy leverages optimization in an attempt to reduce portfolio level tail risk and mitigate downside losses
Investment Approach
The Fund is an actively managed exchange-traded fund (“ETF”) that will invest, under normal circumstances, at least 80% of the value of its net assets (plus the amount of any borrowings for investment purposes) in exchange-traded equity securities of U.S. large-capitalization issuers that meet environmental, social, and governance (“ESG”) standards, as determined and in the sole discretion of Stance Capital, LLC. The Fund currently considers companies within the Russell 1000® Index and S&P 500® Index to be large capitalization issuers.
In identifying investments for the Fund, the Portfolio Managers utilize three independent processes.
First, the Portfolio Managers apply a rules-based methodology to the universe of large-capitalization companies and identify companies that successfully manage, in the view and sole discretion of the Portfolio Managers sustainability-related key performance indicators (“KPIs”) such as energy productivity, carbon intensity, water dependence, and waste profile as well as KPIs relating to governance, including capacity to innovate, unfunded pension fund liabilities, chief executive officer/average worker pay, safety performance, employee turnover, leadership diversity, percentage tax paid, and percent of bonus linked to sustainability performance. Companies that have engaged exclusively or primarily in weapons, tobacco, or thermal coal, may be excluded from consideration.
Second, the Portfolio Managers apply a machine-learning model that uses financial, risk, and other factors to identify companies that, in the view and sole discretion of the Portfolio Managers, are most likely to outperform both in absolute returns and in risk-adjusted returns over the next quarter.
Finally, the Portfolio Managers optimize the portfolio in an attempt to minimize tail risk and maximize diversification.
Key Facts
as of 7/26/24Inception Date 3/15/21 Ticker STNC Primary Exchange NYSE CUSIP 42588P 692 Net Assets $112MM Premium/Discount -0.16% 30-Day Median Bid/Ask Spread 0.24% Portfolio Managers
The Fund is sub-advised by Stance Capital, LLC, an independent, employee-owned investment adviser headquartered in Boston, MA.
Share -
Performance
Daily NAV & Pricing
as of 7/26/24-
NAV
$29.71
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NAV % Change
0.54%
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Price
$29.66
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Price % Change
0.51%
Average Annualized Total Returns
as of 6/30/24Name 1 Mo 3 Mo YTD 1 yr 3 yr 5 yr Since Inception (3/15/21) STNC - NAV 0.92% -2.84% 4.53% 9.39% 3.88% - 5.38% STNC - Market Price 1.27% -2.84% 4.60% 9.29% 3.82% - 5.38% S&P 500® Index 3.59% 4.28% 15.29% 24.56% 10.01% - 11.88% as of 6/30/24Name 1 Mo 3 Mo YTD 1 yr 3 yr 5 yr Since Inception (3/15/21) STNC - NAV 0.92% -2.84% 4.53% 9.39% 3.88% - 5.38% STNC - Market Price 1.27% -2.84% 4.60% 9.29% 3.82% - 5.38% S&P 500® Index 3.59% 4.28% 15.29% 24.56% 10.01% - 11.88% Calendar Year Total Returns
2023 2022 2021 STNC - NAV 11.4% -12.78% 17.00% S&P 500® Index 26.29% -18.11% 21.40%
Annual Returns for 2021 are inception 3/15/21 through 12/31/22.
Historical Premium/Discount Data
Number of Days At: 2023 Q1 2024 Q2 2024 Q3 2024 Premium 93 18 9 — NAV 58 13 12 — Discount 99 30 42 —
Chart Description
Shareholders may pay more than net asset value (“NAV”) when buying fund shares and receive less than NAV when selling fund shares, because shares are bought and sold at current market prices. The performance quoted represents past performance and does not guarantee future results. The NAV of the Fund’s shares is determined as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time) each day the NYSE is open. Share are purchased and sold in secondary market transactions at negotiated market prices rather than at NAV. Shares of the Fund may be bought and sold throughout the day on the exchange through a brokerage account. However, shares are not individually redeemable, and may only be redeemed directly from the Fund by Authorized Participants in very large creation/redemption units. Shares may trade at, above or below NAV. Brokerage commissions will reduce returns.
Returns-Based Statistics
Relative to S&P 500® Indexas of 6/30/24Type 3 yr Alpha -5.08 Beta 0.90 Upside Capture 78.04 Downside Capture 95.08 Alpha measures the fund’s excess return relative to the return of the benchmark. Beta measures the volatility of the fund compared to that of the benchmark. The beta of the benchmark is 1.00. Capture ratios measure the fund’s overall performance in up markets (positive return periods) and down markets (negative return periods).
Sharpe Ratio
as of 6/30/24Type 3 yr STNC 0.11 S&P 500® Index 0.44 Large Blend Category Average 0.32 Sharpe Ratio is a measure of risk-adjusted return, reflecting the average return earned in excess of the risk-free rate per unit of volatility.
Standard Deviation
as of 6/30/24Type 3 yr STNC 17.46 S&P 500® Index 17.86 Large Blend Category Average 16.83 Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.
Fund Expenses
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Gross expense ratio
0.95%
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Net expense ratio
0.85%
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Effective April 28, 2023, the name of the Hennessy Stance ESG Large Cap ETF was changed to the Hennessy Stance ESG ETF.
The performance quoted represents past performance and does not guarantee future results. Performance for periods greater than 1 year is annualized. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Current performance may be lower or higher than the performance quoted.
The Fund’s investment manager has contractually agreed to ensure that total operating expenses (excluding brokerage commissions, taxes, interest expense, acquired fund fees and expenses, and any extraordinary expenses) do not exceed 0.85% of the Fund’s average daily net assets. The contractual arrangement will continue until February 28, 2025.
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Portfolio
Portfolio Characteristics
as of 6/30/24STNC Dividend Yield 0.08% 30-Day SEC Yield: Subsidized 0.93% 30-Day SEC Yield: Unsubsidized 0.83% Distribution Frequency Annually Active Share vs. the S&P 500® Index 84% Portfolio Turnover 270% Median Price/Earnings 23.09x Median Price/Book 4.93x Price/Earnings measures a stock’s price per share compared to earnings. Price/Book measures a stock’s price per share to book value. Portfolio Turnover and Price/Earnings shown reflect the trailing 12-month period.Impact Characteristics
as of 6/30/24Tobacco Producer Exposure*
Companies involved in the production of tobacco.100% less than primary benchmark** Guns and Ammunition Industry Exposure***
Companies that produce or sell guns and ammunition.100% less than primary benchmark** Fossil Fuel Industry Exposure****
Companies operating or servicing fossil fuel extraction.81 % less than primary benchmark** Portfolio Impact Characteristics provide investors with specific non-traditional metrics. Alongside other metrics and information, these enable investors to evaluate funds on certain environmental, social, and governance characteristics. These characteristics do not provide an indication of current or future performance, nor do they represent the potential risk and reward profile of a fund. They are provided for transparency and for information purposes only. These characteristics should not be considered solely or in isolation, but instead are one type of information that investors may wish to consider when assessing a fund.Portfolio Holdings - Create Basket
Top 10 Holdings
as of 7/26/24Name Ticker CUSIP Shares Market Value % of Net Assets Bank of New York Mellon Corp/The BK 064058100 112 $7,319.20 5.0% Apple Inc AAPL 037833100 29 $6,320.84 4.3% 3M Co MMM 88579Y101 41 $5,213.56 3.5% Microsoft Corp MSFT 594918104 12 $5,103.24 3.5% IDEX Corp IEX 45167R104 25 $5,161.50 3.5% Cencora Inc COR 03073E105 21 $4,780.02 3.2% Prudential Financial Inc PRU 744320102 37 $4,593.18 3.1% Kroger Co/The KR 501044101 84 $4,558.68 3.1% Westinghouse Air Brake Technologies Corp WAB 929740108 29 $4,631.01 3.1% Akamai Technologies Inc AKAM 00971T101 47 $4,557.59 3.1% Total as % of Net Assets 35.4% Total Holdings: 45
as of 7/26/24Name Ticker CUSIP Shares Market Value % of Net Assets Bank of New York Mellon Corp/The BK 064058100 112 $7,319.20 5.0% Apple Inc AAPL 037833100 29 $6,320.84 4.3% 3M Co MMM 88579Y101 41 $5,213.56 3.5% Microsoft Corp MSFT 594918104 12 $5,103.24 3.5% IDEX Corp IEX 45167R104 25 $5,161.50 3.5% Cencora Inc COR 03073E105 21 $4,780.02 3.2% Prudential Financial Inc PRU 744320102 37 $4,593.18 3.1% Kroger Co/The KR 501044101 84 $4,558.68 3.1% Westinghouse Air Brake Technologies Corp WAB 929740108 29 $4,631.01 3.1% Akamai Technologies Inc AKAM 00971T101 47 $4,557.59 3.1% Sysco Corp SYY 871829107 63 $4,589.55 3.1% Raymond James Financial Inc RJF 754730109 39 $4,550.52 3.1% CVS Health Corp CVS 126650100 73 $4,453.00 3.0% Boston Scientific Corp BSX 101137107 57 $4,270.44 2.9% HP Inc HPQ 40434L105 117 $4,251.78 2.9% Goldman Sachs Group Inc/The GS 38141G104 8 $3,992.24 2.7% PTC Inc PTC 69370C100 23 $3,997.40 2.7% Synchrony Financial SYF 87165B103 74 $3,757.72 2.6% Catalent Inc CTLT 148806102 66 $3,872.88 2.6% Chipotle Mexican Grill Inc CMG 169656105 74 $3,687.42 2.5% eBay Inc EBAY 278642103 69 $3,738.42 2.5% Home Depot Inc/The HD 437076102 10 $3,595.10 2.4% O'Reilly Automotive Inc ORLY 67103H107 3 $3,330.93 2.3% Marriott International Inc/MD MAR 571903202 13 $3,075.80 2.1% AutoZone Inc AZO 053332102 1 $3,090.31 2.1% Applied Materials Inc AMAT 038222105 14 $2,890.58 2.0% Ameriprise Financial Inc AMP 03076C106 6 $2,637.24 1.8% Lowe's Cos Inc LOW 548661107 11 $2,627.57 1.8% Accenture PLC ACN G1151C101 8 $2,627.68 1.8% Hartford Financial Services Group Inc/The HIG 416515104 24 $2,631.12 1.8% Dexcom Inc DXCM 252131107 40 $2,560.00 1.7% Capital One Financial Corp COF 14040H105 17 $2,539.12 1.7% A O Smith Corp AOS 831865209 27 $2,281.50 1.5% Illinois Tool Works Inc ITW 452308109 9 $2,227.41 1.5% TRUIST FINANCIAL CORP TFC 89832Q109 42 $1,865.64 1.3% Wells Fargo & Co WFC 949746101 32 $1,932.48 1.3% AT&T Inc T 00206R102 85 $1,615.85 1.1% Broadcom Inc AVGO 11135F101 11 $1,667.93 1.1% Moderna Inc MRNA 60770K107 11 $1,343.21 0.9% Xylem Inc/NY XYL 98419M100 8 $1,126.72 0.8% Oracle Corp ORCL 68389X105 8 $1,112.08 0.8% WW Grainger Inc GWW 384802104 1 $970.34 0.7% Alphabet Inc GOOGL 02079K305 6 $1,002.00 0.7% Delta Air Lines Inc DAL 247361702 14 $617.82 0.4% Freeport-McMoRan Inc FCX 35671D857 13 $585.00 0.4% Total as % of Net Assets 100.0% Portfolio Holdings - Redeem Basket
Top 10 Holdings
as of 7/26/24Name Ticker CUSIP Shares Market Value % of Net Assets Bank of New York Mellon Corp/The BK 064058100 112 $7,319.20 5.0% Apple Inc AAPL 037833100 29 $6,320.84 4.3% 3M Co MMM 88579Y101 41 $5,213.56 3.5% Microsoft Corp MSFT 594918104 12 $5,103.24 3.5% IDEX Corp IEX 45167R104 25 $5,161.50 3.5% Cencora Inc COR 03073E105 21 $4,780.02 3.2% Prudential Financial Inc PRU 744320102 37 $4,593.18 3.1% Kroger Co/The KR 501044101 84 $4,558.68 3.1% Westinghouse Air Brake Technologies Corp WAB 929740108 29 $4,631.01 3.1% Akamai Technologies Inc AKAM 00971T101 47 $4,557.59 3.1% Total as % of Net Assets 35.4% Total Holdings: 45
as of 7/26/24Name Ticker CUSIP Shares Market Value % of Net Assets Bank of New York Mellon Corp/The BK 064058100 112 $7,319.20 5.0% Apple Inc AAPL 037833100 29 $6,320.84 4.3% 3M Co MMM 88579Y101 41 $5,213.56 3.5% Microsoft Corp MSFT 594918104 12 $5,103.24 3.5% IDEX Corp IEX 45167R104 25 $5,161.50 3.5% Cencora Inc COR 03073E105 21 $4,780.02 3.2% Prudential Financial Inc PRU 744320102 37 $4,593.18 3.1% Kroger Co/The KR 501044101 84 $4,558.68 3.1% Westinghouse Air Brake Technologies Corp WAB 929740108 29 $4,631.01 3.1% Akamai Technologies Inc AKAM 00971T101 47 $4,557.59 3.1% Sysco Corp SYY 871829107 63 $4,589.55 3.1% Raymond James Financial Inc RJF 754730109 39 $4,550.52 3.1% CVS Health Corp CVS 126650100 73 $4,453.00 3.0% Boston Scientific Corp BSX 101137107 57 $4,270.44 2.9% HP Inc HPQ 40434L105 117 $4,251.78 2.9% Goldman Sachs Group Inc/The GS 38141G104 8 $3,992.24 2.7% PTC Inc PTC 69370C100 23 $3,997.40 2.7% Synchrony Financial SYF 87165B103 74 $3,757.72 2.6% Catalent Inc CTLT 148806102 66 $3,872.88 2.6% Chipotle Mexican Grill Inc CMG 169656105 74 $3,687.42 2.5% eBay Inc EBAY 278642103 69 $3,738.42 2.5% Home Depot Inc/The HD 437076102 10 $3,595.10 2.4% O'Reilly Automotive Inc ORLY 67103H107 3 $3,330.93 2.3% Marriott International Inc/MD MAR 571903202 13 $3,075.80 2.1% AutoZone Inc AZO 053332102 1 $3,090.31 2.1% Applied Materials Inc AMAT 038222105 14 $2,890.58 2.0% Ameriprise Financial Inc AMP 03076C106 6 $2,637.24 1.8% Lowe's Cos Inc LOW 548661107 11 $2,627.57 1.8% Accenture PLC ACN G1151C101 8 $2,627.68 1.8% Hartford Financial Services Group Inc/The HIG 416515104 24 $2,631.12 1.8% Dexcom Inc DXCM 252131107 40 $2,560.00 1.7% Capital One Financial Corp COF 14040H105 17 $2,539.12 1.7% A O Smith Corp AOS 831865209 27 $2,281.50 1.5% Illinois Tool Works Inc ITW 452308109 9 $2,227.41 1.5% TRUIST FINANCIAL CORP TFC 89832Q109 42 $1,865.64 1.3% Wells Fargo & Co WFC 949746101 32 $1,932.48 1.3% AT&T Inc T 00206R102 85 $1,615.85 1.1% Broadcom Inc AVGO 11135F101 11 $1,667.93 1.1% Moderna Inc MRNA 60770K107 11 $1,343.21 0.9% Xylem Inc/NY XYL 98419M100 8 $1,126.72 0.8% Oracle Corp ORCL 68389X105 8 $1,112.08 0.8% WW Grainger Inc GWW 384802104 1 $970.34 0.7% Alphabet Inc GOOGL 02079K305 6 $1,002.00 0.7% Delta Air Lines Inc DAL 247361702 14 $617.82 0.4% Freeport-McMoRan Inc FCX 35671D857 13 $585.00 0.4% Total as % of Net Assets 100.0% * Companies involved in the production of tobacco as classified by Morningstar Global Equity Classification Structure
** Data powered by YourStake Click here for methodology PDF
*** Companies that produce or sell guns and ammunition as classified by SEC
**** Companies operating in the fossil fuel industry, and utilities powered by fossil fuel as classified by As You Sow – using five screens with zero limitations
• Top 200 owners of Carbon Reserves - updated quarterly according to The Carbon Underground methodology
• Coal Industry - according to Morningstar Global Equity Classification Structure
• O&G Industry - according to Morningstar Global Equity Classification Structure
• Top 30 coal-fired utilities - Updated periodically depending on often this list would change
• Fossil Fuel Utilities - according to Morningstar Global Equity Classification Structure -
Distributions
Ex Date Record Date Pay Date Ordinary Income Short-term Capital Gain Long-term Capital Gain Total 12/14/22 12/15/22 12/16/22 $0.14642013 - - $0.14642013 12/15/21 12/16/21 12/17/21 $0.09736030 - $0.02377 $0.12113030 -
Fund Documents
Currently, paper copies of the annual and semi-annual reports are not sent by mail unless shareholders specifically request paper copies. You may elect to receive paper copies free of charge by contacting your financial intermediary.
**Please note the upcoming change to shareholder report delivery.**
After July 24, 2024, shareholder reports will be sent by mail unless a shareholder has elected or elects to receive reports electronically via e-delivery. To sign up for e-delivery, contact your financial intermediary.
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