Exchange Traded Concepts

Exchange Traded Concepts lags peer asset managers in a number of stewardship qualities, resulting in a Below Average Parent Pillar rating. Portfolio managers at Exchange Traded Concepts tend not to invest alongside their shareholders, detracting from the overall stewardship assessment. None of the firm’s assets are covered by an invested manager. A cause for concern at Exchange Traded Concepts is its relatively inexperienced longest-tenured management. In particular, average asset-weighted tenure at the firm is only three years, a negative contributor to the rating. The firm’s lineup has demonstrated industry-average durability. Its three-year risk-adjusted success ratio is 60%, meaning that 60% of funds have survived and beaten their respective category median on a risk-adjusted basis. A low success ratio not only indicates weak performance but it can raise flags about a firm's discipline around investment strategy and product development.