By the standards of traditional multi-factor exchange traded funds, the Entrepreneur 30 Fund (ENTR) is undoubtedly unique. It’s also been rewarding for investors.
The Entrepreneur 30 Fund tries to reflect the performance of the Entrepreneur 30 Index, which is comprised of 30 U.S. companies with the highest market capitalizations and composite scores based on six criteria referred to as entrepreneurial standards. ENTR primarily invests in US Large Cap companies that meet the thresholds embedded in their proprietary Entrepreneur Factor (EF).
While a multi-asset strategy might sound well and good, how does an investor choose which assets to incorporate in his or her portfolio? That’s where the entrepreneurial component of ENTR comes into play.
ENTR screens factors, such as management, which requires set factors regarding a company’s management must be met for a company to be included, such as the turnover among the top five executives within a company as compared to other companies in the broader universe.
The compensation screen requires set factors such as annual compensation, salary, bonus, stock options, and other compensation criteria be met for a company to be included.
The ENTR ETF Outshines Old Multi-Factor Strategies
There is even a thematic approach to investing in entrepreneurs. Investors can tap into the entrepreneurship economy with a targeted strategy to enhance an investment portfolio with quickly rising companies.
So, what is an entrepreneurial company, and how is it different from others? Entrepreneurial companies are led by a main founder. From decades together, founder-run Entrepreneurial companies have shaped the economy by investing in their people and innovation leading to exceptional growth. Many Entrepreneurial companies are run by Founder-CEOs.
ERShares incorporates a bottom-up investment orientation, powered by artificial intelligence, that stands above other investment factors such as momentum, sector, growth, value, leverage, market cap (size), and geographic orientation. With the aid of AI and Thematic Research, ERShares incorporates a macro-economic, top-down approach that integrates changing investment flows, innovation entry points, sector growth, and other characteristics into a dynamic, global perspective model. Finally, ERShares backs the companies with the best entrepreneurial minds that invest in the right technology for a sustainable and better future.
For more on entrepreneurial strategies, visit our Entrepreneur ETF Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.