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Overview
Hennessy Stance ESG ETF (STNC)
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 6/6/23$25.91Daily NAV % Change
0.42%Daily Price
as of 6/6/23$25.93Daily Price % Change
0.39%
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 6/6/23Inception Date 3/15/21 Ticker STNC Primary Exchange NYSE CUSIP 42588P 692 Net Assets $44MM Premium/Discount 0.09% 30-Day Median Bid/Ask Spread 0.34% 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 6/6/23-
NAV
$25.91
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NAV % Change
0.42%
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Price
$25.93
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Price % Change
0.39%
Monthly & Quarterly Performance
as of 5/31/23Name 1 Mo 3 Mo YTD 1 yr 3 yr 5 yr Since Inception (3/15/21) STNC - NAV -5.95% -3.04% -0.49% 0.07% - - 0.69% STNC - Market Price -5.85% -3.12% -0.27% 0.08% - - 0.74% S&P 500 0.43% 5.75% 9.65% 2.92% - - 3.98% as of 3/31/23Name 1 Mo 3 Mo YTD 1 yr 3 yr 5 yr Since Inception (3/15/21) STNC - NAV 2.14% 4.83% 4.83% -0.62% - - 3.35% STNC - Market Price 1.90% 4.90% 4.90% -0.88% - - 3.32% S&P 500 3.67% 7.50% 7.50% -7.73% - - 3.30% Calendar Year Total Returns
as of 3/31/232022 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 Q2 2023 Premium 118 16 — NAV 29 19 — Discount 104 27 —
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 3/31/23STNC Dividend Yield 0.55% 30-Day SEC Yield: Subsidized 0.17% 30-Day SEC Yield: Unsubsidized 0.07% Distribution Frequency Annually Median Price/Earnings 22.20x Median Price/Book 5.88x 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 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 December 31, 2024.
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. Price/Earnings measures a stock’s price per share compared to earnings. Price/Book measures a stock’s price per share to book value.
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Portfolio
Portfolio Holdings - Create Basket
Top 10 Holdings
as of 6/6/23Name Ticker CUSIP Shares Market Value % of Net Assets COSTAR GROUP INC CSGP 22160N109 71 $5,844.01 4.5% BIOGEN INC BIIB 09062X103 18 $5,396.22 4.2% VISA INC V 92826C839 23 $5,249.06 4.1% JOHNSON & JOHNSON JNJ 478160104 32 $5,061.76 3.9% JACOBS SOLUTIONS INC J 46982L108 43 $5,003.91 3.9% AON PLC AON G0403H108 16 $4,998.08 3.9% VERTEX PHARMACEUTICALS INC VRTX 92532F100 15 $4,956.15 3.8% MASTERCARD INCORPORATED MA 57636Q104 13 $4,939.48 3.8% DANAHER CORPORATION DHR 235851102 21 $4,927.65 3.8% LAS VEGAS SANDS CORP LVS 517834107 81 $4,770.09 3.7% Total as % of Net Assets 39.6% Total Holdings: 35
as of 6/6/23Name Ticker CUSIP Shares Market Value % of Net Assets COSTAR GROUP INC CSGP 22160N109 71 $5,844.01 4.5% BIOGEN INC BIIB 09062X103 18 $5,396.22 4.2% VISA INC V 92826C839 23 $5,249.06 4.1% JOHNSON & JOHNSON JNJ 478160104 32 $5,061.76 3.9% JACOBS SOLUTIONS INC J 46982L108 43 $5,003.91 3.9% AON PLC AON G0403H108 16 $4,998.08 3.9% VERTEX PHARMACEUTICALS INC VRTX 92532F100 15 $4,956.15 3.8% MASTERCARD INCORPORATED MA 57636Q104 13 $4,939.48 3.8% DANAHER CORPORATION DHR 235851102 21 $4,927.65 3.8% LAS VEGAS SANDS CORP LVS 517834107 81 $4,770.09 3.7% BORGWARNER INC BWA 099724106 103 $4,837.91 3.7% CBOE GLOBAL MKTS INC CBOE 12503M108 36 $4,741.92 3.7% AVERY DENNISON CORP AVY 053611109 28 $4,690.56 3.6% AUTOZONE INC AZO 053332102 2 $4,646.10 3.6% NASDAQ INC NDAQ 631103108 81 $4,627.53 3.6% SNAP ON INC SNA 833034101 17 $4,467.09 3.5% HOME DEPOT INC HD 437076102 15 $4,440.00 3.4% TRANE TECHNOLOGIES PLC TT G8994E103 24 $4,193.76 3.2% AGILENT TECHNOLOGIES INC A 00846U101 35 $4,110.40 3.2% LABORATORY CORP AMER HLDGS LH 50540R409 19 $4,140.48 3.2% AMPHENOL CORP NEW APH 032095101 52 $4,030.00 3.1% EVEREST RE GROUP LTD RE G3223R108 11 $3,844.61 3.0% KEYSIGHT TECHNOLOGIES INC KEYS 49338L103 24 $3,875.28 3.0% ORGANON & CO OGN 68622V106 178 $3,574.24 2.8% MARKETAXESS HLDGS INC MKTX 57060D108 13 $3,462.29 2.7% ULTA BEAUTY INC ULTA 90384S303 6 $2,504.94 1.9% MOODYS CORP MCO 615369105 6 $1,984.14 1.5% STEEL DYNAMICS INC STLD 858119100 20 $1,986.00 1.5% IQVIA HLDGS INC IQV 46266C105 9 $1,849.32 1.4% ENPHASE ENERGY INC ENPH 29355A107 10 $1,826.10 1.4% ACCENTURE PLC IRELAND ACN G1151C101 6 $1,848.24 1.4% MARRIOTT INTL INC NEW MAR 571903202 6 $1,085.40 0.8% GENERAL ELECTRIC CO GE 369604301 6 $632.76 0.5% LAUDER ESTEE COS INC EL 518439104 3 $552.39 0.4% ALPHABET INC GOOGL 02079K305 3 $381.93 0.3% Total as % of Net Assets 100.0% Portfolio Holdings - Redeem Basket
Top 10 Holdings
as of 6/6/23Name Ticker CUSIP Shares Market Value % of Net Assets COSTAR GROUP INC CSGP 22160N109 71 $5,844.01 4.5% BIOGEN INC BIIB 09062X103 18 $5,396.22 4.2% VISA INC V 92826C839 23 $5,249.06 4.1% JOHNSON & JOHNSON JNJ 478160104 32 $5,061.76 3.9% JACOBS SOLUTIONS INC J 46982L108 43 $5,003.91 3.9% AON PLC AON G0403H108 16 $4,998.08 3.9% VERTEX PHARMACEUTICALS INC VRTX 92532F100 15 $4,956.15 3.8% MASTERCARD INCORPORATED MA 57636Q104 13 $4,939.48 3.8% DANAHER CORPORATION DHR 235851102 21 $4,927.65 3.8% LAS VEGAS SANDS CORP LVS 517834107 81 $4,770.09 3.7% Total as % of Net Assets 39.6% Total Holdings: 35
as of 6/6/23Name Ticker CUSIP Shares Market Value % of Net Assets COSTAR GROUP INC CSGP 22160N109 71 $5,844.01 4.5% BIOGEN INC BIIB 09062X103 18 $5,396.22 4.2% VISA INC V 92826C839 23 $5,249.06 4.1% JOHNSON & JOHNSON JNJ 478160104 32 $5,061.76 3.9% JACOBS SOLUTIONS INC J 46982L108 43 $5,003.91 3.9% AON PLC AON G0403H108 16 $4,998.08 3.9% VERTEX PHARMACEUTICALS INC VRTX 92532F100 15 $4,956.15 3.8% MASTERCARD INCORPORATED MA 57636Q104 13 $4,939.48 3.8% DANAHER CORPORATION DHR 235851102 21 $4,927.65 3.8% LAS VEGAS SANDS CORP LVS 517834107 81 $4,770.09 3.7% BORGWARNER INC BWA 099724106 103 $4,837.91 3.7% CBOE GLOBAL MKTS INC CBOE 12503M108 36 $4,741.92 3.7% AVERY DENNISON CORP AVY 053611109 28 $4,690.56 3.6% AUTOZONE INC AZO 053332102 2 $4,646.10 3.6% NASDAQ INC NDAQ 631103108 81 $4,627.53 3.6% SNAP ON INC SNA 833034101 17 $4,467.09 3.5% HOME DEPOT INC HD 437076102 15 $4,440.00 3.4% TRANE TECHNOLOGIES PLC TT G8994E103 24 $4,193.76 3.2% AGILENT TECHNOLOGIES INC A 00846U101 35 $4,110.40 3.2% LABORATORY CORP AMER HLDGS LH 50540R409 19 $4,140.48 3.2% AMPHENOL CORP NEW APH 032095101 52 $4,030.00 3.1% EVEREST RE GROUP LTD RE G3223R108 11 $3,844.61 3.0% KEYSIGHT TECHNOLOGIES INC KEYS 49338L103 24 $3,875.28 3.0% ORGANON & CO OGN 68622V106 178 $3,574.24 2.8% MARKETAXESS HLDGS INC MKTX 57060D108 13 $3,462.29 2.7% ULTA BEAUTY INC ULTA 90384S303 6 $2,504.94 1.9% MOODYS CORP MCO 615369105 6 $1,984.14 1.5% STEEL DYNAMICS INC STLD 858119100 20 $1,986.00 1.5% IQVIA HLDGS INC IQV 46266C105 9 $1,849.32 1.4% ENPHASE ENERGY INC ENPH 29355A107 10 $1,826.10 1.4% ACCENTURE PLC IRELAND ACN G1151C101 6 $1,848.24 1.4% MARRIOTT INTL INC NEW MAR 571903202 6 $1,085.40 0.8% GENERAL ELECTRIC CO GE 369604301 6 $632.76 0.5% LAUDER ESTEE COS INC EL 518439104 3 $552.39 0.4% ALPHABET INC GOOGL 02079K305 3 $381.93 0.3% Total as % of Net Assets 100.0% -
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 contacting your financial intermediary.
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