Xsquare Capital

Xsquare Capital open-end and exchange-traded products are costlier than similarly distributed funds at other highly-rated asset managers, on average in the most expensive quintile of category peers. The higher expense profile contributes negatively to the firm's overall stewardship rating and creates a larger performance hurdle. A cause for concern at Xsquare Capital is its relatively inexperienced longest-tenured management. In particular, average asset-weighted tenure at the firm is only four years, a negative contributor to the rating. The firm's lineup has had encouraging initial results. Its three-year risk-adjusted success ratio is 67%, meaning that of the funds with a three-year track record, 67% have survived and beaten their respective category median on a risk-adjusted basis.