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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 11/28/23$26.53Daily NAV % Change
0.01%Daily Price
as of 11/28/23$26.49Daily Price % Change
-0.23%
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 11/28/23Inception Date 3/15/21 Ticker STNC Primary Exchange NYSE CUSIP 42588P 692 Net Assets $57MM Premium/Discount -0.15% 30-Day Median Bid/Ask Spread 0.19% 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 11/28/23-
NAV
$26.53
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NAV % Change
0.01%
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Price
$26.49
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Price % Change
-0.23%
Average Annualized Total Returns
as of 10/31/23Name 1 Mo 3 Mo YTD 1 yr 3 yr 5 yr Since Inception (3/15/21) STNC - NAV -4.95% -11.56% -5.16% -5.99% - - -1.24% STNC - Market Price -4.96% -11.50% -5.00% -5.97% - - -1.22% S&P 500® Index -2.10% -8.25% 10.69% 10.14% - - 3.70% as of 9/30/23Name 1 Mo 3 Mo YTD 1 yr 3 yr 5 yr Since Inception (3/15/21) STNC - NAV -5.64% -6.27% -0.22% 8.41% - - 0.71% STNC - Market Price -5.66% -6.32% -0.04% 8.35% - - 0.73% S&P 500® Index -4.77% -3.27% 13.07% 21.62% - - 4.70% Calendar Year Total Returns
as of 9/30/232021 2022 STNC - NAV 17.00% -12.78% S&P 500® Index 21.40% -18.11%
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 Q3 2023 Q4 2023 Premium 118 16 32 32 — NAV 29 19 10 10 — Discount 104 27 20 21 —
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 9/30/23Type 1 yr Alpha -11.47 Beta 1.01 Upside Capture 66.33 Downside Capture 99.94 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 9/30/23Type 1 yr STNC 0.26 {/if}S&P 500® Index 0.99 Large Blend Category Average 0.87 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 9/30/23Type 1 yr STNC 17.76 S&P 500® Index 15.99 Large Blend Category Average 15.47 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 December 31, 2024.
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Portfolio
Portfolio Characteristics
as of 9/30/23STNC Dividend Yield 0.58% 30-Day SEC Yield: Subsidized 0.0% 30-Day SEC Yield: Unsubsidized 0.0% Distribution Frequency Annually Active Share vs. the S&P 500® Index 85% Portfolio Turnover 284% Median Price/Earnings 24.90x Median Price/Book 5.89x 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 9/30/23Tobacco 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.100 % 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 11/29/23Name Ticker CUSIP Shares Market Value % of Net Assets EXPEDIA GROUP INC EXPE 30212P303 45 $6,108.75 4.6% MICROSOFT CORP MSFT 594918104 16 $6,061.60 4.6% ADOBE INC ADBE 00724F101 9 $5,556.51 4.2% AMPHENOL CORP NEW APH 032095101 60 $5,410.80 4.1% MASCO CORP MAS 574599106 85 $5,131.45 3.9% PAYPAL HLDGS INC PYPL 70450Y103 86 $4,985.42 3.8% SMITH A O CORP AOS 831865209 67 $5,031.70 3.8% SYNOPSYS INC SNPS 871607107 9 $4,972.14 3.8% REGENERON PHARMACEUTICALS REGN 75886F107 6 $4,851.54 3.7% MASTERCARD INCORPORATED MA 57636Q104 12 $4,917.84 3.7% Total as % of Net Assets 40.2% Total Holdings: 38
as of 11/29/23Name Ticker CUSIP Shares Market Value % of Net Assets EXPEDIA GROUP INC EXPE 30212P303 45 $6,108.75 4.6% MICROSOFT CORP MSFT 594918104 16 $6,061.60 4.6% ADOBE INC ADBE 00724F101 9 $5,556.51 4.2% AMPHENOL CORP NEW APH 032095101 60 $5,410.80 4.1% MASCO CORP MAS 574599106 85 $5,131.45 3.9% PAYPAL HLDGS INC PYPL 70450Y103 86 $4,985.42 3.8% SMITH A O CORP AOS 831865209 67 $5,031.70 3.8% SYNOPSYS INC SNPS 871607107 9 $4,972.14 3.8% REGENERON PHARMACEUTICALS REGN 75886F107 6 $4,851.54 3.7% MASTERCARD INCORPORATED MA 57636Q104 12 $4,917.84 3.7% YUM BRANDS INC YUM 988498101 37 $4,644.24 3.5% AGILENT TECHNOLOGIES INC A 00846U101 36 $4,593.24 3.5% NIKE INC NKE 654106103 39 $4,304.43 3.3% DAVITA INC DVA 23918K108 42 $4,183.62 3.2% MARRIOTT INTL INC NEW MAR 571903202 20 $4,049.60 3.1% VERISK ANALYTICS INC VRSK 92345Y106 17 $4,050.42 3.1% FORTIVE CORP FTV 34959J108 59 $3,994.89 3.0% PENTAIR PLC PNR G7S00T104 62 $3,950.64 3.0% WATERS CORP WAT 941848103 14 $3,916.36 3.0% AON PLC AON G0403H108 12 $3,865.20 2.9% BIOGEN INC BIIB 09062X103 16 $3,712.96 2.8% ZOETIS INC ZTS 98978V103 20 $3,515.80 2.7% THE CIGNA GROUP CI 125523100 13 $3,417.31 2.6% ALPHABET INC GOOGL 02079K305 24 $3,239.76 2.5% PALO ALTO NETWORKS INC PANW 697435105 11 $3,178.01 2.4% AUTOZONE INC AZO 053332102 1 $2,596.51 2.0% MSCI INC MSCI 55354G100 5 $2,632.85 2.0% TESLA INC TSLA 88160R101 11 $2,685.54 2.0% APPLE INC AAPL 037833100 11 $2,083.07 1.6% ENPHASE ENERGY INC ENPH 29355A107 20 $2,019.20 1.5% FORTINET INC FTNT 34959E109 30 $1,608.00 1.2% SOLAREDGE TECHNOLOGIES INC SEDG 83417M104 18 $1,413.90 1.1% TEXAS INSTRS INC TXN 882508104 9 $1,378.80 1.0% NUCOR CORP NUE 670346105 7 $1,146.46 0.9% EDWARDS LIFESCIENCES CORP EW 28176E108 16 $1,078.88 0.8% GRAINGER W W INC GWW 384802104 1 $775.69 0.6% GENERAC HLDGS INC GNRC 368736104 4 $462.40 0.4% STEEL DYNAMICS INC STLD 858119100 2 $230.98 0.2% Total as % of Net Assets 100.1% Portfolio Holdings - Redeem Basket
Top 10 Holdings
as of 11/29/23Name Ticker CUSIP Shares Market Value % of Net Assets EXPEDIA GROUP INC EXPE 30212P303 45 $6,108.75 4.6% MICROSOFT CORP MSFT 594918104 16 $6,061.60 4.6% ADOBE INC ADBE 00724F101 9 $5,556.51 4.2% AMPHENOL CORP NEW APH 032095101 60 $5,410.80 4.1% MASCO CORP MAS 574599106 85 $5,131.45 3.9% PAYPAL HLDGS INC PYPL 70450Y103 86 $4,985.42 3.8% SMITH A O CORP AOS 831865209 67 $5,031.70 3.8% SYNOPSYS INC SNPS 871607107 9 $4,972.14 3.8% REGENERON PHARMACEUTICALS REGN 75886F107 6 $4,851.54 3.7% MASTERCARD INCORPORATED MA 57636Q104 12 $4,917.84 3.7% Total as % of Net Assets 40.2% Total Holdings: 38
as of 11/29/23Name Ticker CUSIP Shares Market Value % of Net Assets EXPEDIA GROUP INC EXPE 30212P303 45 $6,108.75 4.6% MICROSOFT CORP MSFT 594918104 16 $6,061.60 4.6% ADOBE INC ADBE 00724F101 9 $5,556.51 4.2% AMPHENOL CORP NEW APH 032095101 60 $5,410.80 4.1% MASCO CORP MAS 574599106 85 $5,131.45 3.9% PAYPAL HLDGS INC PYPL 70450Y103 86 $4,985.42 3.8% SMITH A O CORP AOS 831865209 67 $5,031.70 3.8% SYNOPSYS INC SNPS 871607107 9 $4,972.14 3.8% REGENERON PHARMACEUTICALS REGN 75886F107 6 $4,851.54 3.7% MASTERCARD INCORPORATED MA 57636Q104 12 $4,917.84 3.7% YUM BRANDS INC YUM 988498101 37 $4,644.24 3.5% AGILENT TECHNOLOGIES INC A 00846U101 36 $4,593.24 3.5% NIKE INC NKE 654106103 39 $4,304.43 3.3% DAVITA INC DVA 23918K108 42 $4,183.62 3.2% MARRIOTT INTL INC NEW MAR 571903202 20 $4,049.60 3.1% VERISK ANALYTICS INC VRSK 92345Y106 17 $4,050.42 3.1% FORTIVE CORP FTV 34959J108 59 $3,994.89 3.0% PENTAIR PLC PNR G7S00T104 62 $3,950.64 3.0% WATERS CORP WAT 941848103 14 $3,916.36 3.0% AON PLC AON G0403H108 12 $3,865.20 2.9% BIOGEN INC BIIB 09062X103 16 $3,712.96 2.8% ZOETIS INC ZTS 98978V103 20 $3,515.80 2.7% THE CIGNA GROUP CI 125523100 13 $3,417.31 2.6% ALPHABET INC GOOGL 02079K305 24 $3,239.76 2.5% PALO ALTO NETWORKS INC PANW 697435105 11 $3,178.01 2.4% AUTOZONE INC AZO 053332102 1 $2,596.51 2.0% MSCI INC MSCI 55354G100 5 $2,632.85 2.0% TESLA INC TSLA 88160R101 11 $2,685.54 2.0% APPLE INC AAPL 037833100 11 $2,083.07 1.6% ENPHASE ENERGY INC ENPH 29355A107 20 $2,019.20 1.5% FORTINET INC FTNT 34959E109 30 $1,608.00 1.2% SOLAREDGE TECHNOLOGIES INC SEDG 83417M104 18 $1,413.90 1.1% TEXAS INSTRS INC TXN 882508104 9 $1,378.80 1.0% NUCOR CORP NUE 670346105 7 $1,146.46 0.9% EDWARDS LIFESCIENCES CORP EW 28176E108 16 $1,078.88 0.8% GRAINGER W W INC GWW 384802104 1 $775.69 0.6% GENERAC HLDGS INC GNRC 368736104 4 $462.40 0.4% STEEL DYNAMICS INC STLD 858119100 2 $230.98 0.2% Total as % of Net Assets 100.1% * 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
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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