Was researching EUFN, an ETF that holds European banks.
From their AI-generated 'research' page:
...analysis of the strategy's portfolio shows it has maintained a significant overweight position in liquidity exposure and an underweight in volatility exposure compared with category peers (Such gobblydegook!) High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And low volatility exposure is rooted in stocks that have a lower standard deviation of returns.
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The investment seeks to track the investment results of the MSCI Europe Financials Index composed of developed market European equities in the financials sector. (So ... it's tracking a financial index; that's fair given its name.) The fund generally will invest at least 80% of its assets in the component securities of the underlying index and in investments that have economic characteristics that are substantially identical to the component securities of the underlying index. The index is a free float-adjusted market capitalization-weighted index designed to measure the combined equity market performance of the financials sector of developed market countries in Europe......
...The portfolio is overweight in financial services by 10.5 percentage points (ya think??) in terms of assets compared with the category average, and its utilities allocation is similar to the category. The sectors with low exposure compared with category peers are technology and consumer cyclical, with technology underweighting the average portfolio by 2.7 percentage points of assets and consumer cyclical similar to the average (Gee, I would hope so!) The portfolio is composed of 113 holdings and is diversified among those holdings.
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Just another reason to take anything authored by "Morningstar Manager Research" with a healthy grain of salt. Because, who wants utilities and consumer cyclical stocks in an ETF tracking a Financial Index?
Comments
My favorite was the one where they downgraded a fund's "People" score for turnover, after one guy died.
(Or as I tease my AI and database colleagues at work, I say "AI is a giant database" lol)
I have no idea what college students have to churn out these days, but I'm sure most old timers would agree that it isn't as good as it was in their day.
These reports are usually incoherent and often include copious amounts of gobbledegook.
M* Analyst Reports created by humans vary in quality—some are very good while others are mediocre.
The only thing that I like is their charts, especially for bonds, because they include the daily distributions.