The human capital component focuses on a company’s ability to attract and retain talent, as well as creating a culture that cares for the workers.
Network effects are the moat that companies are building around themselves with their market positions and is made up of the value that users of that network get from adding other users to the network.
These four components are assigned a value using proprietary quantitative methodology and machine learning, and are combined with the fifth element, the company’s tangible assets, to assign a final score to a company. Only the top scoring companies are included in the fund from the largest 1,000 publicly listed U.S. securities by market cap.
“We have begun to see many other famous value investors embrace the notion that value needs to be adapted for the rise of the intangible economy. We believe this modern interpretation of value principles will ultimately bear fruit, providing an anchor of value in a world increasingly rife with speculation,” said Wu.
Top holdings include Microsoft (MSFT) at 5.33% weight, Amazon (AMZN) at 4.36% weight, Apple (AAPL) at 3.57% weight, Facebook (FB) at 3.36% weight, and Alphabet (GOOGL) at 3.16% weight.
“By building upon timeless value investing principles, we hope to offer a portfolio of high-quality, modern companies without sacrificing our margin of safety,” said Wu.
ITAN has an expense ratio of 0.50% and carries 152 holdings.