Effective February 5, EntrepreneurShares LLC will be changing the names of two of its ETFs. The ERShares Entrepreneur 30 ETF will change its name to the ERShares Entrepreneurs ETF (ENTR), while the ERShares Non-US Small Cap ETF will change its name to the ERShares NextGen Entrepreneurs ETF (ERSX).
In understanding the changing of these product titles, ERShares’ COO and Chief Investment Strategist, Eva Ados, explains ERShares’ position. For ERSX, as Ados states, “NextGen entrepreneurs are the up and coming entrepreneurs with strong growth potential. They are global in nature, smaller in market cap size, and typically unknown to the masses. Given the Inter Market reversion, we now see exceptional opportunities from international regions with these smaller constituents.”
Regarding ENTR, Ados adds, “ERShares Entrepreneurs represents established entrepreneurs from around the world. While some names may be familiar to investors, many others are hidden gems. We generally don’t invest in FAAMG stocks but believe our ETF contains candidates that include the next likely entrants.”
The Main Course
As has been made clear in the past, these funds are currently ERShares main ETF offerings. ERShares selects companies worldwide and across capitalization levels to create an eclectic and well-balanced mix in its funds.
ENTR tracks an index of 30 US stocks that meet entrepreneurial criteria as defined by the advisor in its current form. ERShares has created a rules-based methodology that selects publicly-traded entrepreneurial companies, applying this methodology in creating the Entrepreneur 30 Index. The benchmark for ENTR is the Russell 1000 Growth Index, which measures the performance of the large-capitalization growth sector of the U.S. equity market.
Currently, ERSX tracks a fundamental-selected index of global small cap ex-US equities weighted by market capitalization. The fund’s index is benchmarked against the FTSE All-World Ex-US Small Cap Index, a market-capitalization weighted index representing small cap stocks’ performance in developed and emerging markets excluding the US. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market capitalization.
For more investing ideas, visit our Entrepreneur ETF Channel.