Investors can tap into the entrepreneurship economy with a targeted exchange traded fund strategy that enhances their investment portfolios with quickly rising companies.
In the recent webcast, The Entrepreneur Factor: Distinguishing Characteristics of Dynamic, Disruptive Investing, Dr. Joel Shulman, Founder, Managing Partner & CIO, EntrepreneurShares, pointed out that entrepreneurial companies are led by a main founder, and from decades together, founder-run Entrepreneurial companies have shaped the economy by investing in their people and innovation leading to exceptional growth.
As a way to capture this growth opportunity, Eva Ados, Chief Operating Officer, EntrepreneurShares, explained that ERShares scours the planet for the most entrepreneurial, strong growth companies to put to market in one easy-to-invest fund, the Entrepreneur 30 Fund (NYSEArca: ENTR).
ENTR’s indexing methodology incorporates the ERShares Entrepreneur Factor, which delivers strong performance across a variety of investment strategies without disrupting investors’ underlying risk profile metrics.
“We were among the first to introduce a thematic approach to investing, having started 15 years ago following research conducted at Harvard University,” Shulman said. “Our investment process is powered by latest artificial intelligence technology. We leverage the AI technology for asset screening, portfolio building and for our ongoing operations.”
Ados highlighted Artificial Intelligence Technologies in their daily operations. AI allows ERShares to integrate superior selection criteria and monitor performance on a real-time basis.
The ERShares methodology also looks for characteristics like organizational dynamics, global perspective, integrated trusted leaders, visionary leadership, disruptive entrepreneurial mindsets, and innovative implementations.
Shulman also expanded on the Entrepreneur Factor, a proprietary methodology. 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.
Shulman underscored the importance of the Entrepreneur Factor as many Entrepreneurial companies are run by Founder-CEOs. Their presence is reflected in the company’s performance, and having the right Founder-CEO can make an important difference. The differential between the period with the Founder-CEO and without is approximately 7% in excess return.
“Entrepreneurs typically provide the difference between success and failure and wealth creation versus wealth destruction,” Ados said. “Disruptive Innovation moves at a rapid pace and only the most capable leaders survive. At ERShares, we back the companies with the best entrepreneurial minds that invest in the right technology for a sustainable and better future.”
Ados also highlighted the importance of a global investment perspective. Over the past 50 years, U.S. Markets have outperformed non-U.S. markets for periods of approximately 4-5 years before reverting, with non-U.S. markets dominating for a comparable period. However, we are now experiencing a period of 12-year dominance by U.S. Markets, which is about 2-3 times longer than typical. This is long overdue for a correction.
“Through ERShares, newcomers and seasoned investors alike can take advantage of the growth potential of blossoming, global businesses,” Shulman said.
Lastly, the ERShares model performs well relative to the market over extended time periods. The underlying ER30 Index has a long record of exceptional performance.
Financial advisors who are interested in learning more about disruptive investment opportunities can watch the webcast here on demand.