Motley Fool Asset Management launched its first exchange traded fund Tuesday with the debut of the Motley Fool 100 ETF (Cboe:TMFC).
The new ETF tracks the Motley Fool 100 index. That benchmark is cap-weighted and “measures the performance of the 100 largest companies in The Motley Fool ‘recommendation universe,’” according to a statement. “Companies in the index are incorporated and listed in the United States and are open “buy” recommendations in Motley Fool research publications or among the top 150 stocks in The Motley Fool’s “Fool IQ” research database.”
Companies in the index are buy-rated fare from Motley Fool publications, such as the Motley Fool Stock Advisor, Motley Fool Hidden Gems, Motley Fool Income Investor, Motley Fool Inside Value, and Motley Fool Rule Breakers or those that rank among the 150 US. stocks in The Motley Fool’s Fool IQ research database.
At the end of December, the index allocated nearly 45% of its weight to technology stocks and 17.5% to consumer discretionary names, giving the benchmark a growth feel. The healthcare and financial services sectors combine for just over 20% of the index’s weight.
“At The Motley Fool we are looking for the companies that are going to drive innovation for the next decade and beyond, which may explain the current overweighting of the index to the tech sector and underweighting to other sectors, such as industrials and energy,” according to Motley Fool.