Growth stocks led again in 2020. Within that group, companies with entrepreneurial flair were among the best performers, which is raising the profile of the Entrepreneur 30 Fund (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. ENTR primarily invests in US Large Cap companies that meet the thresholds embedded in their proprietary Entrepreneur Factor (EF).
ENTR has serious tailwinds entering the new year.
ERShares founder Joel Shulman notes that “performance in 2020 was very concentrated with 2/3 of the 20% Russell 1000 annual return being derived from only 10 stocks. Moreover, the top 20 performers were all entrepreneurial companies.”
Why ENTR’s Methodology Is Working
ENTR delivers strong performance across various investment strategies without disrupting investors’ underlying risk profile metrics. The investment process is powered by the latest artificial intelligence technology. Investors can leverage AI technology for asset screening, portfolio building, and ongoing operations.
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. Additionally, ERShares backs the companies with the best entrepreneurial minds that invest in the right technology for a sustainable and better future.
Shulman “describes the ability of entrepreneurial companies to effectively pivot and quickly meet market demand and mentions how 2020 witnessed entrepreneurial companies with less downside risk and more upside potential. He suggests that this pattern will likely continue in 2021,” according to ERShares.
ENTR also includes sophisticated screens to weed out undesirable companies. 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 compared to other companies in the broader universe. A profitability screen requires a company to meet predetermined criteria regarding net income over a static threshold to be included, including the company’s net income as compared to predetermined benchmarks.
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.