The Negative Morningstar Analyst Rating issued for First Trust Tactical High Yield ETF HYLS on June 24, 2020, was incorrect due to an error in the prospectus adjusted operating expense ratio that is used as an input to the rating. The correct prospectus adjusted operating expense ratio, exclusive of interest expense, is 0.95%. Based on this corrected figure, the strategy’s compact supporting team, and concerns around portfolio construction, the fund earns a Morningstar Analyst Rating of Neutral.
Will HYLS outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable HYLS’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the HYLS management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of HYLS’s parent organization’s priorities and whether they’re in line with investors’ interests.