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Overview
Hennessy Stance ESG Large Cap ETF (STNC)
Actively managed, the Fund seeks to achieve long-term capital appreciation.
Information about the Hennessy Stance ESG Large Cap 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 3/29/23$25.96Daily NAV % Change
0.77%Daily Price
as of 3/29/23$25.96Daily Price % Change
0.80%
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 3/29/23Inception Date 3/15/21 Ticker STNC Primary Exchange NYSE CUSIP 42588P 692 Net Assets $44MM Premium/Discount 0.00% 30-Day Median Bid/Ask Spread 0.12% 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 3/29/23-
NAV
$25.96
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NAV % Change
0.77%
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Price
$25.96
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Price % Change
0.80%
Monthly & Quarterly Performance
as of 2/28/23Name 1 Mo 3 Mo YTD 1 yr 3 yr 5 yr Since Inception (3/15/21) STNC - NAV -1.98% -3.03% 2.63% 0.68% - - 2.38% STNC - Market Price -1.68% -2.52% 2.94% 0.62% - - 2.48% S&P 500 -2.44% -2.28% 3.69% -7.69% - - 1.56% as of 12/31/22Name 1 Mo 3 Mo YTD 1 yr 3 yr 5 yr Since Inception (3/15/21) STNC - NAV -5.51% 8.65% -12.78% -12.78% - - 1.13% STNC - Market Price -5.30% 8.39% -13.07% -13.07% - - 1.06% S&P 500 -5.76% 7.56% -18.11% -18.11% - - -0.33% Calendar Year Total Returns
as of 12/31/222022 2021 STNC -12.78% 17.00% S&P 500® Index -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: 2022 Q1 2023 Premium 118 — NAV 29 — Discount 104 —
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.
Fund Expenses
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Gross expense ratio
0.95%
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Net expense ratio
0.85%
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Portfolio Characteristics
as of 12/31/22STNC Dividend Yield 0.58% 30-Day SEC Yield: Subsidized 0.32% 30-Day SEC Yield: Unsubsidized 0.22% Distribution Frequency Annually Median Price/Earnings 21.39x Median Price/Book 5.00x Impact Characteristics
as of 12/31/22% of STNC Holdings % of S&P 500® Index Holdings Carbon Intensity1 0.75 1.3 Clean Revenue2 14.72 12.76 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 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 December 31, 2024.
1 Carbon Intensity: This captures how much carbon a company generates per unit of sales. The data is sourced from Corporate Knights, which amalgamates Bloomberg, Thompson Reuters, and other third parties and has a manual analyst review. A lower number indicates less carbon is used to generate a unit of sales.
2 Clean Revenue: Percentage of sales that is from sources that either create no carbon, have a positive environmental footprint, or help the transition to a lower carbon world.
The S&P 500® is an unmanaged index commonly used to measure the performance of U.S. stocks. One cannot invest directly in an index. Standard & Poor’s Financial Services is the source and owner of the S&P® and S&P 500® trademarks.
30-Day SEC Yield is a standardized yield computed by dividing the net investment income per share earned during the past 30-day period by the share price at the end of the period, expressed as an annual percentage rate. The 30-Day SEC Yield should be regarded as an estimate of the Fund’s rate of recent investment income, and it may not equal the Fund’s actual distribution rate. Past yields are no guarantee of future yields.
Dividend Yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price.
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Portfolio
Portfolio Holdings - Create Basket
Top 10 Holdings
as of 3/29/23Name Ticker CUSIP Shares Market Value % of Net Assets ARISTA NETWORKS INC ANET 040413106 37 $6,012.50 4.9% GRAINGER W W INC GWW 384802104 8 $5,400.32 4.4% LAS VEGAS SANDS CORP LVS 517834107 95 $5,215.50 4.2% REGENERON PHARMACEUTICALS REGN 75886F107 6 $4,916.10 4.0% SNAP ON INC SNA 833034101 20 $4,831.00 3.9% CDW CORP CDW 12514G108 25 $4,707.50 3.8% DOVER CORP DOV 260003108 30 $4,408.80 3.6% VERTEX PHARMACEUTICALS INC VRTX 92532F100 14 $4,399.36 3.6% HUMANA INC HUM 444859102 9 $4,363.78 3.6% FORTIVE CORP FTV 34959J108 64 $4,305.28 3.5% Total as % of Net Assets 39.5% Total Holdings: 35
as of 3/29/23Name Ticker CUSIP Shares Market Value % of Net Assets ARISTA NETWORKS INC ANET 040413106 37 $6,012.50 4.9% GRAINGER W W INC GWW 384802104 8 $5,400.32 4.4% LAS VEGAS SANDS CORP LVS 517834107 95 $5,215.50 4.2% REGENERON PHARMACEUTICALS REGN 75886F107 6 $4,916.10 4.0% SNAP ON INC SNA 833034101 20 $4,831.00 3.9% CDW CORP CDW 12514G108 25 $4,707.50 3.8% DOVER CORP DOV 260003108 30 $4,408.80 3.6% VERTEX PHARMACEUTICALS INC VRTX 92532F100 14 $4,399.36 3.6% HUMANA INC HUM 444859102 9 $4,363.78 3.6% FORTIVE CORP FTV 34959J108 64 $4,305.28 3.5% HOME DEPOT INC HD 437076102 15 $4,250.40 3.5% EDWARDS LIFESCIENCES CORP EW 28176E108 52 $4,245.28 3.5% CBOE GLOBAL MKTS INC CBOE 12503M108 32 $4,246.08 3.5% NORDSON CORP NDSN 655663102 19 $4,123.38 3.4% BIOGEN INC BIIB 09062X103 15 $4,110.15 3.3% NASDAQ INC NDAQ 631103108 76 $4,110.84 3.3% T-MOBILE US INC TMUS 872590104 27 $3,882.87 3.2% KROGER CO KR 501044101 79 $3,874.16 3.2% UNITEDHEALTH GROUP INC UNH 91324P102 8 $3,732.72 3.0% GENUINE PARTS CO GPC 372460105 23 $3,738.42 3.0% APPLE INC AAPL 037833100 22 $3,536.94 2.9% LABORATORY CORP AMER HLDGS LH 50540R409 16 $3,549.12 2.9% PRICE T ROWE GROUP INC TROW 74144T108 32 $3,540.80 2.9% KEYSIGHT TECHNOLOGIES INC KEYS 49338L103 22 $3,446.30 2.8% JACOBS SOLUTIONS INC J 46982L108 30 $3,471.30 2.8% AGILENT TECHNOLOGIES INC A 00846U101 26 $3,480.10 2.8% METTLER TOLEDO INTERNATIONAL COM MTD 592688105 2 $2,992.62 2.4% AUTOZONE INC AZO 053332102 1 $2,395.37 2.0% COSTCO WHSL CORP NEW COST 22160K105 4 $1,963.48 1.6% KEURIG DR PEPPER INC KDP 49271V100 51 $1,789.59 1.5% UNITED RENTALS INC URI 911363109 3 $1,152.33 0.9% EXPEDIA GROUP INC EXPE 30212P303 11 $1,045.33 0.9% AUTODESK INC ADSK 052769106 5 $995.80 0.8% ADOBE SYSTEMS INCORPORATED ADBE 00724F101 1 $379.16 0.3% TESLA INC TSLA 88160R101 1 $193.88 0.2% Total as % of Net Assets 100.1% Portfolio Holdings - Redeem Basket
Top 10 Holdings
as of 3/29/23Name Ticker CUSIP Shares Market Value % of Net Assets ARISTA NETWORKS INC ANET 040413106 37 $6,012.50 4.9% GRAINGER W W INC GWW 384802104 8 $5,400.32 4.4% LAS VEGAS SANDS CORP LVS 517834107 95 $5,215.50 4.2% REGENERON PHARMACEUTICALS REGN 75886F107 6 $4,916.10 4.0% SNAP ON INC SNA 833034101 20 $4,831.00 3.9% CDW CORP CDW 12514G108 25 $4,707.50 3.8% DOVER CORP DOV 260003108 30 $4,408.80 3.6% VERTEX PHARMACEUTICALS INC VRTX 92532F100 14 $4,399.36 3.6% HUMANA INC HUM 444859102 9 $4,363.78 3.6% FORTIVE CORP FTV 34959J108 64 $4,305.28 3.5% Total as % of Net Assets 39.5% Total Holdings: 35
as of 3/29/23Name Ticker CUSIP Shares Market Value % of Net Assets ARISTA NETWORKS INC ANET 040413106 37 $6,012.50 4.9% GRAINGER W W INC GWW 384802104 8 $5,400.32 4.4% LAS VEGAS SANDS CORP LVS 517834107 95 $5,215.50 4.2% REGENERON PHARMACEUTICALS REGN 75886F107 6 $4,916.10 4.0% SNAP ON INC SNA 833034101 20 $4,831.00 3.9% CDW CORP CDW 12514G108 25 $4,707.50 3.8% DOVER CORP DOV 260003108 30 $4,408.80 3.6% VERTEX PHARMACEUTICALS INC VRTX 92532F100 14 $4,399.36 3.6% HUMANA INC HUM 444859102 9 $4,363.78 3.6% FORTIVE CORP FTV 34959J108 64 $4,305.28 3.5% HOME DEPOT INC HD 437076102 15 $4,250.40 3.5% EDWARDS LIFESCIENCES CORP EW 28176E108 52 $4,245.28 3.5% CBOE GLOBAL MKTS INC CBOE 12503M108 32 $4,246.08 3.5% NORDSON CORP NDSN 655663102 19 $4,123.38 3.4% BIOGEN INC BIIB 09062X103 15 $4,110.15 3.3% NASDAQ INC NDAQ 631103108 76 $4,110.84 3.3% T-MOBILE US INC TMUS 872590104 27 $3,882.87 3.2% KROGER CO KR 501044101 79 $3,874.16 3.2% UNITEDHEALTH GROUP INC UNH 91324P102 8 $3,732.72 3.0% GENUINE PARTS CO GPC 372460105 23 $3,738.42 3.0% APPLE INC AAPL 037833100 22 $3,536.94 2.9% LABORATORY CORP AMER HLDGS LH 50540R409 16 $3,549.12 2.9% PRICE T ROWE GROUP INC TROW 74144T108 32 $3,540.80 2.9% KEYSIGHT TECHNOLOGIES INC KEYS 49338L103 22 $3,446.30 2.8% JACOBS SOLUTIONS INC J 46982L108 30 $3,471.30 2.8% AGILENT TECHNOLOGIES INC A 00846U101 26 $3,480.10 2.8% METTLER TOLEDO INTERNATIONAL COM MTD 592688105 2 $2,992.62 2.4% AUTOZONE INC AZO 053332102 1 $2,395.37 2.0% COSTCO WHSL CORP NEW COST 22160K105 4 $1,963.48 1.6% KEURIG DR PEPPER INC KDP 49271V100 51 $1,789.59 1.5% UNITED RENTALS INC URI 911363109 3 $1,152.33 0.9% EXPEDIA GROUP INC EXPE 30212P303 11 $1,045.33 0.9% AUTODESK INC ADSK 052769106 5 $995.80 0.8% ADOBE SYSTEMS INCORPORATED ADBE 00724F101 1 $379.16 0.3% TESLA INC TSLA 88160R101 1 $193.88 0.2% Total as % of Net Assets 100.1% -
Fund Documents
Paper copies of the annual and semi-annual reports will no longer be sent by mail unless shareholders specifically request paper copies. You may elect to receive paper copies free of charge by calling U.S. Bank Global Fund Services at 1-800-261-6950 or, if you own shares through a financial intermediary, by contacting your financial intermediary.
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