I bought my first shares of PTL this morning. I look forward to seeing how it does. One thing I don’t like about BIBL , besides the higher fee, is too many REITs, which I’m not looking to increase.I’m writing prematurely because the fund info is still quite fresh and Morningstar doesn’t have portfolio level detail yet, but there will be 500 companies in the ETF and there is signifcant overlap with the S&P 500 as you mention, albeit more at the large/mid cap level rather than the mega cap level. I certainly wouldn’t describe it as undiversified - I’d leave that description for so-called “focused funds” that only hold 10-50 stocks. This fund is more akin to a mid cap fund.Well, now that the holding list for PTL is available, I did a cross comparison with the holding list for SPY and found that 217 out of the 504 tickers are in PTL. Out of the top 100 in SPY, I count 16 in PTL. There has got to be huge risk with the pass-fail rankings such that if one of the top companies ended up signing a pledge or ended up ranking above average in the surveys for a representative of people that PTL disfavors, they could end up dumping those shares. The prospectus doesn't indicate how they would relieve them, but I could imagine selling shares immediately with no replacement could result in capital gains distributions on an ETF, whereas when companies transition from growth to value or from S&P 400 to S&P 500, the ETFs tend to remove them more gradually.
I’m excited about PTL because it should reduce this type turnover since it’s focused on holding the largest 500 companies with a nonnegative score rather than the 100 top scoring companies. Proof will be in the pudding, but I expect PTL’s turnover to be lower than BIBL.That said, I’ll patiently watch for a while before making any changes.
I spent a good bit of time yesterday running some of my other ETFs through Inspire’s scorer. My mid cap ETF scored only slightly negative. My utilities and international ETFs the same.
In other words, if these criteria are something important to you, one could construct a portfolio tilting heavier in those areas.
Statistics: Posted by Capster1 — Fri Jun 21, 2024 4:21 am — Replies 68 — Views 9830