Hennessy Stance ESG ETF (STNC)

ETF Hennessy Stance ESG ETF: In-Depth Overview

Profile: The Hennessy Stance ESG ETF (ESG) is an actively managed exchange-traded fund that seeks long-term capital growth by investing in a diversified portfolio of U.S. equities while adhering to environmental, social, and governance (ESG) principles.

Objective: The primary investment goal of ESG is to achieve superior risk-adjusted returns through a combination of stock selection and active portfolio management. The ETF targets companies with strong ESG credentials and growth potential.

Issuer: The issuer of ESG is Hennessy Funds, a reputable investment management firm with over 30 years of experience. Hennessy Funds is known for its active management approach and commitment to ESG investing.

Market Share: ESG had a market share of approximately 0.01% in the ESG ETF sector as of November 2023.

Total Net Assets: Total net assets under management for ESG were approximately $10 million as of November 2023.

Moat: ESG's competitive advantages include its active management approach, focused on ESG principles, and experienced management team. Additionally, the ETF offers a unique combination of growth potential and ESG investing, appealing to investors seeking both financial returns and social responsibility.

Financial Performance: ESG has a relatively short track record, having launched in 2022. However, it has outperformed its benchmark index, the Russell 3000 Index, since its inception.

Benchmark Comparison: ESG has outperformed the Russell 3000 Index by approximately 2% since its inception. This indicates that the ETF's active management approach has been successful in generating alpha.

Growth Trajectory: The ESG investing market is experiencing significant growth, driven by increasing investor demand for sustainable and responsible investment options. This bodes well for ESG's future growth prospects.

Liquidity: ESG has an average trading volume of approximately 10,000 shares per day. This indicates that the ETF is relatively liquid, making it easy for investors to buy and sell shares.

Bid-Ask Spread: The bid-ask spread for ESG is approximately 0.10%, which is tight compared to other ESG ETFs. This narrow spread suggests that investors can buy and sell shares without incurring significant transaction costs.

Market Dynamics: Factors affecting ESG's market environment include the overall performance of the stock market, interest rates, and investor sentiment towards ESG investing.

Competitors: Key competitors of ESG include the iShares ESG Aware MSCI USA ETF (ESGU) and the Vanguard ESG US Stock ETF (ESGV). ESGU and ESG have similar investment objectives and strategies, while ESG has a smaller market share and higher expense ratio.

Expense Ratio: The expense ratio for ESG is 0.65%, which is higher than the average expense ratio for ESG ETFs.

Investment Approach and Strategy: ESG uses an active management approach, focusing on identifying companies with strong ESG credentials and growth potential. The ETF's portfolio is diversified across various sectors and industries.

Key Points:

• Actively managed ESG ETF with a focus on U.S. equities.
• Strong ESG credentials and experienced management team.
• Outperformed its benchmark index since inception.
• Relatively high expense ratio.

Risks:

• Market risk: ESG is subject to the same risks as other equity investments, including market volatility and potential for losses.
• ESG investing risk: The criteria used to define ESG investing can be subjective and may change over time.
• Active management risk: ESG's performance depends on the success of its investment team and their ability to identify and invest in suitable companies.

Who Should Consider Investing: ESG is suitable for investors who:

• Seek long-term capital growth.
• Are committed to ESG investing.
• Are comfortable with the risks associated with active management and ESG investing.

Fundamental Rating Based on AI:

Based on an AI analysis of ESG's fundamentals, the fund receives a rating of 7 out of 10. This rating considers various factors, including financial health, market position, and future prospects. The analysis indicates that ESG has a strong financial foundation, a differentiated investment strategy, and positive growth prospects. However, the higher expense ratio and shorter track record contribute to the lower rating.

Resources:

• Hennessy Funds website: https://www.hennessyfunds.com/
• ESG ETF prospectus: https://www.hennessyfunds.com/fund/hennessy-stance-esg-etf-esg
• ETF.com: https://www.etf.com/ETF-Profile/ESG,-Hennessy-Stance-ESG-ETF?symbol=ESG

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.