Market, Sector, and Fund Updates:

Viewpoints by Hennessy
  • Overview

    STNC

    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

    STNC

    Daily NAV
    as of 4/12/24

    $29.33

    Daily NAV % Change

    -1.09%

    Daily Price
    as of 4/12/24

    $29.31

    Daily Price % Change

    -1.16%
    Read the Press Release
    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 4/12/24
    Inception Date 3/15/21
    Ticker STNC
    Primary Exchange NYSE
    CUSIP 42588P 692
    Net Assets $116MM
    Premium/Discount -0.09%
    30-Day Median Bid/Ask Spread 0.47%

    Portfolio Managers

    • Bill Davis
      Portfolio Manager
      • 3
        Years on Fund
      • 14
        Years of Experience
    • Kyle Balkissoon
      Portfolio Manager
      • 3
        Years on Fund
      • 12
        Years of Experience

    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 4/12/24
    • NAV

      $29.33

    • NAV % Change

      -1.09%

    • Price

      $29.31

    • Price % Change

      -1.16%

    Average Annualized Total Returns

    as of 3/31/24
    Name 1 Mo 3 Mo YTD 1 yr 3 yr 5 yr Since Inception (3/15/21)
    STNC - NAV 3.38% 7.59% 7.59% 14.33% 7.76% - 6.84%
    STNC - Market Price 3.29% 7.66% 7.66% 14.42% 7.67% - 6.84%
    S&P 500® Index 3.22% 10.56% 10.56% 29.88% 11.49% - 11.37%

    Please swipe to view table

    as of 3/31/24
    Name 1 Mo 3 Mo YTD 1 yr 3 yr 5 yr Since Inception (3/15/21)
    STNC - NAV 3.38% 7.59% 7.59% 14.33% 7.76% - 6.84%
    STNC - Market Price 3.29% 7.66% 7.66% 14.42% 7.67% - 6.84%
    S&P 500® Index 3.22% 10.56% 10.56% 29.88% 11.49% - 11.37%

    Please swipe to view table

    Calendar Year Total Returns

    2021 2022 2023
    STNC - NAV 17.00% -12.78% 11.4%
    S&P 500® Index 21.40% -18.11% 26.29%

    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
    Premium 93 18
    NAV 58 13
    Discount 99 30

    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® Index

    as of 3/31/24
    Type 3 yr
    Alpha -2.65
    Beta 0.91
    Upside Capture 85.12
    Downside Capture 94.23

    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 3/31/24
    Type 3 yr
    STNC 0.35
    S&P 500® Index 0.54
    Large Blend Category Average 0.45

    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 3/31/24
    Type 3 yr
    STNC 17.36
    S&P 500® Index 17.60
    Large Blend Category Average 16.60

    Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.

    Fund Expenses

      • Gross expense ratio

        0.95%

      • Net expense ratio

        0.85%

    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.

  • Portfolio

    Portfolio Characteristics

    as of 3/31/24
    STNC
    Dividend Yield 0.08%
    30-Day SEC Yield: Subsidized 0.54%
    30-Day SEC Yield: Unsubsidized 0.44%
    Distribution Frequency Annually
    Active Share vs. the S&P 500® Index 83%
    Portfolio Turnover 254%
    Median Price/Earnings 26.71x
    Median Price/Book 6.64x
    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 3/31/24
    Tobacco 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.
    20 % 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 4/12/24
    Name Ticker CUSIP Shares Market Value % of Net Assets
    Travelers Cos Inc/The TRV 89417E109 31 $6,854.10 4.7%
    Chipotle Mexican Grill Inc CMG 169656105 2 $5,915.20 4.0%
    Sysco Corp SYY 871829107 72 $5,418.00 3.7%
    McDonald's Corp MCD 580135101 20 $5,347.80 3.7%
    Regeneron Pharmaceuticals Inc REGN 75886F107 6 $5,428.20 3.7%
    W R Berkley Corp WRB 084423102 64 $5,257.60 3.6%
    Tyson Foods Inc TSN 902494103 90 $5,200.20 3.6%
    Cigna Group/The CI 125523100 15 $5,247.60 3.6%
    Paychex Inc PAYX 704326107 43 $5,289.00 3.6%
    Emerson Electric Co EMR 291011104 46 $5,181.90 3.5%
    Total as % of Net Assets 37.7%

    Please swipe to view table

    Total Holdings: 35

    as of 4/12/24
    Name Ticker CUSIP Shares Market Value % of Net Assets
    Travelers Cos Inc/The TRV 89417E109 31 $6,854.10 4.7%
    Chipotle Mexican Grill Inc CMG 169656105 2 $5,915.20 4.0%
    Sysco Corp SYY 871829107 72 $5,418.00 3.7%
    McDonald's Corp MCD 580135101 20 $5,347.80 3.7%
    Regeneron Pharmaceuticals Inc REGN 75886F107 6 $5,428.20 3.7%
    W R Berkley Corp WRB 084423102 64 $5,257.60 3.6%
    Tyson Foods Inc TSN 902494103 90 $5,200.20 3.6%
    Cigna Group/The CI 125523100 15 $5,247.60 3.6%
    Paychex Inc PAYX 704326107 43 $5,289.00 3.6%
    Emerson Electric Co EMR 291011104 46 $5,181.90 3.5%
    Nasdaq Inc NDAQ 631103108 84 $5,167.68 3.5%
    Mastercard Inc MA 57636Q104 11 $5,119.18 3.5%
    Cencora Inc COR 03073E105 22 $5,148.00 3.5%
    TJX Cos Inc/The TJX 872540109 55 $5,193.10 3.5%
    Microsoft Corp MSFT 594918104 12 $5,062.80 3.5%
    AbbVie Inc ABBV 00287Y109 31 $5,030.68 3.4%
    Capital One Financial Corp COF 14040H105 36 $5,026.32 3.4%
    Cognizant Technology Solutions Corp CTSH 192446102 71 $4,917.46 3.4%
    A O Smith Corp AOS 831865209 56 $4,844.00 3.3%
    Walt Disney Co/The DIS 254687106 43 $4,902.43 3.3%
    Laboratory Corp of America Holdings LH 50540R409 22 $4,526.06 3.1%
    CSX Corp CSX 126408103 123 $4,346.82 3.0%
    Starbucks Corp SBUX 855244109 52 $4,415.84 3.0%
    AT&T Inc T 00206R102 247 $4,028.57 2.8%
    Hilton Worldwide Holdings Inc HLT 43300A203 20 $4,102.00 2.8%
    Apple Inc AAPL 037833100 22 $3,884.10 2.7%
    Accenture PLC ACN G1151C101 12 $3,784.80 2.6%
    NIKE Inc NKE 654106103 31 $2,852.00 1.9%
    Sherwin-Williams Co/The SHW 824348106 8 $2,546.00 1.7%
    Newmont Corp NEM 651639106 38 $1,468.32 1.0%
    Bank of New York Mellon Corp/The BK 064058100 24 $1,321.20 0.9%
    Home Depot Inc/The HD 437076102 4 $1,371.48 0.9%
    Cintas Corp CTAS 172908105 2 $1,336.82 0.9%
    Citigroup Inc C 172967424 10 $596.80 0.4%
    Advanced Micro Devices Inc AMD 007903107 2 $326.56 0.2%
    Total as % of Net Assets 99.9%

    Please swipe to view table

    Portfolio Holdings - Redeem Basket

    Top 10 Holdings

    as of 4/12/24
    Name Ticker CUSIP Shares Market Value % of Net Assets
    Travelers Cos Inc/The TRV 89417E109 31 $6,854.10 4.7%
    Chipotle Mexican Grill Inc CMG 169656105 2 $5,915.20 4.0%
    Sysco Corp SYY 871829107 72 $5,418.00 3.7%
    McDonald's Corp MCD 580135101 20 $5,347.80 3.7%
    Regeneron Pharmaceuticals Inc REGN 75886F107 6 $5,428.20 3.7%
    W R Berkley Corp WRB 084423102 64 $5,257.60 3.6%
    Tyson Foods Inc TSN 902494103 90 $5,200.20 3.6%
    Cigna Group/The CI 125523100 15 $5,247.60 3.6%
    Paychex Inc PAYX 704326107 43 $5,289.00 3.6%
    Emerson Electric Co EMR 291011104 46 $5,181.90 3.5%
    Total as % of Net Assets 37.7%

    Please swipe to view table

    Total Holdings: 35

    as of 4/12/24
    Name Ticker CUSIP Shares Market Value % of Net Assets
    Travelers Cos Inc/The TRV 89417E109 31 $6,854.10 4.7%
    Chipotle Mexican Grill Inc CMG 169656105 2 $5,915.20 4.0%
    Sysco Corp SYY 871829107 72 $5,418.00 3.7%
    McDonald's Corp MCD 580135101 20 $5,347.80 3.7%
    Regeneron Pharmaceuticals Inc REGN 75886F107 6 $5,428.20 3.7%
    W R Berkley Corp WRB 084423102 64 $5,257.60 3.6%
    Tyson Foods Inc TSN 902494103 90 $5,200.20 3.6%
    Cigna Group/The CI 125523100 15 $5,247.60 3.6%
    Paychex Inc PAYX 704326107 43 $5,289.00 3.6%
    Emerson Electric Co EMR 291011104 46 $5,181.90 3.5%
    Nasdaq Inc NDAQ 631103108 84 $5,167.68 3.5%
    Mastercard Inc MA 57636Q104 11 $5,119.18 3.5%
    Cencora Inc COR 03073E105 22 $5,148.00 3.5%
    TJX Cos Inc/The TJX 872540109 55 $5,193.10 3.5%
    Microsoft Corp MSFT 594918104 12 $5,062.80 3.5%
    AbbVie Inc ABBV 00287Y109 31 $5,030.68 3.4%
    Capital One Financial Corp COF 14040H105 36 $5,026.32 3.4%
    Cognizant Technology Solutions Corp CTSH 192446102 71 $4,917.46 3.4%
    A O Smith Corp AOS 831865209 56 $4,844.00 3.3%
    Walt Disney Co/The DIS 254687106 43 $4,902.43 3.3%
    Laboratory Corp of America Holdings LH 50540R409 22 $4,526.06 3.1%
    CSX Corp CSX 126408103 123 $4,346.82 3.0%
    Starbucks Corp SBUX 855244109 52 $4,415.84 3.0%
    AT&T Inc T 00206R102 247 $4,028.57 2.8%
    Hilton Worldwide Holdings Inc HLT 43300A203 20 $4,102.00 2.8%
    Apple Inc AAPL 037833100 22 $3,884.10 2.7%
    Accenture PLC ACN G1151C101 12 $3,784.80 2.6%
    NIKE Inc NKE 654106103 31 $2,852.00 1.9%
    Sherwin-Williams Co/The SHW 824348106 8 $2,546.00 1.7%
    Newmont Corp NEM 651639106 38 $1,468.32 1.0%
    Bank of New York Mellon Corp/The BK 064058100 24 $1,321.20 0.9%
    Home Depot Inc/The HD 437076102 4 $1,371.48 0.9%
    Cintas Corp CTAS 172908105 2 $1,336.82 0.9%
    Citigroup Inc C 172967424 10 $596.80 0.4%
    Advanced Micro Devices Inc AMD 007903107 2 $326.56 0.2%
    Total as % of Net Assets 99.9%

    Please swipe to view table

    * 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

    Download PDF
    Stance ESG ETF Documents
    Fact Sheet
    Portfolio Perspective
    Summary Prospectus
    Statutory Prospectus
    Statement of Additional Information
    Stance ESG ETF Shareholder Reports and Quarterly Holdings
    Q1 Holdings
    Semi-Annual Report
    Q3 Holdings
    Annual Report (as of 8/31/23)
    Annual Report (as of 10/31/23)

    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.