Plenty of exchange traded funds offer exposure to growth stocks, but few do so with the visionary style of the Entrepreneur 30 Fund (NYSEArca: ENTR).
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.
The factors screened include management, which requires set factors regarding a company’s management, such as the turnover among the top five executives within a company as compared to other companies in the broader universe.
ENTR: A Modern Approach
The profitability screen requires a company meet predetermined criteria regarding net income over a static threshold to be included, including the net income of a company as compared to predetermined benchmarks must be met for the company to be included.
Next, company statistics refers to a company meeting predetermined criteria regarding the corporate structure.
“EntrepreneurShares invests in organizations that emphasize entrepreneurial culture, organic growth, and aligned compensation,” according to EntrepreneurShares. “Investing in companies based on our core fundamental characteristics will provide the foundation to build a high conviction portfolio with the potential for alpha generation and upside capture.”
Due to its indexing methodology, the fund has higher concentration in consumer discretionary, information technology, and healthcare.
Entrepreneurs who break the mold are creating quickly growing companies that investors can gain exposure to through a targeted ETF strategy focusing on these up-and-coming firms. ENTR checks those boxes for investors.
The revenue screen requires a company meet predetermined criteria regarding revenue over a static threshold to be included, including, among other things, the amount and growth of revenue of a company as compared to predetermined benchmarks must.
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.