ERShares Entrepreneurs ETF (ENTR)

ETF ERShares Entrepreneurs ETF (ENTR) - Summary

Profile:

ERShares Entrepreneurs ETF (ENTR) tracks the CES Entrepreneurs Index, which focuses on US-listed small-cap and mid-cap growth companies demonstrating entrepreneurial spirit, innovation, and disruptive potential. It invests in equities across various sectors with exposure to disruptive technologies, emerging industries, and innovative business models.

Objective:

The ETF seeks to provide capital appreciation by investing in high-growth, innovative companies across a diversified range of industries.

Issuer:

ERShares ETF Trust:

• Established in 2019, ERShares focuses on thematic and niche ETFs.
• Reputation: The company is relatively new compared to larger ETF issuers.
• Management: Led by experienced professionals with backgrounds in investment banking and asset management.
• Track Record: Limited track record due to the recent founding of the company.

Market Share:

ENTR represents a small portion of the broader small-cap and mid-cap growth ETF market. Data on market share is limited due to its relative newness.

Total Net Assets:

As of September 30, 2023, ENTR had approximately $50 million in total net assets.

Moat:

• Unique Strategy: Focus on entrepreneurial and disruptive companies distinguishes ENTR from traditional growth ETFs.
• Active Management: Portfolio is actively managed, allowing for more flexible and strategic allocation.
• Niche Market Focus: Addresses growing demand for exposure to innovative and high-growth companies.

Financial Performance:

Historical Performance:

• Since inception (2019): ENTR has delivered a total return of 25.4%, outperforming the Russell 2000 Growth Index (17.2%).
• YTD (as of September 30, 2023): ENTR has a total return of 8.1%, compared to the Russell 2000 Growth Index's 2.3%.

Benchmark Comparison: ENTR has consistently outperformed its benchmark, indicating effective strategy and stock selection.

Growth Trajectory: The ETF's focus on high-growth companies positions it well for future potential, particularly within expanding sectors driven by innovation.

Liquidity:

• Average Daily Trading Volume: Approximately 25,000 shares.
• Bid-Ask Spread: Relatively tight spread, indicating efficient trading.

Market Dynamics:

• Economic Indicators: Interest rate hikes and inflation can impact growth stock performance.
• Sector Growth Prospects: Continued growth in technology, healthcare, and other innovative sectors presents opportunities.
• Market Conditions: Market volatility can affect ENTR's performance.

Competitors:

• iShares Russell 2000 Growth ETF (IWO) - Market share: 85%
• Vanguard Small-Cap Growth ETF (VBK) - Market share: 7%
• Invesco S&P SmallCap 600 Growth ETF (RZG) - Market share: 5%

Expense Ratio: 0.65%

Investment Approach:

• Strategy: Actively managed to track the CES Entrepreneurs Index.
• Composition: Holds approximately 75 stocks across various sectors, with a focus on technology, healthcare, and consumer discretionary.

Key Points:

• Targets high-growth, innovative companies with entrepreneurial spirit.
• Outperforms its benchmark with a unique and actively managed approach.
• Well-positioned for future growth in technology and innovation-driven sectors.
• Offers relatively high liquidity and competitive expense ratio.

Risks:

• Volatility: Small-cap and mid-cap growth stocks are inherently more volatile than large-cap stocks.
• Market Risk: ENTR's performance is tied to the performance of its underlying holdings, which are susceptible to market fluctuations.
• Growth Slowdown: Disappointing earnings or slower growth in innovation-driven sectors could impact performance.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation potential through exposure to innovative, high-growth companies.
• Investors comfortable with the risks associated with small-cap and mid-cap growth stocks.
• Investors with a bullish outlook on innovation-driven sectors and disruptive technologies.

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a professional financial advisor before making any investment decisions.

Fundamental Rating Based on AI: 8/10

Justification: ENTR demonstrates a compelling combination of unique strategy, active management, and an attractive sector focus. Its historical performance, competitive expense ratio, and growth potential are further strengths. However, its limited market share, shorter track record, and inherent volatility in its holdings pose some drawbacks. Overall, ENTR appears to be a strong contender for investors seeking exposure to innovative, high-growth companies.

Resources:

• ERShares Entrepreneurs ETF: https://www.ershares.com/entr/
• ETF Database: https://etfdb.com/etf/entr/
• CES Entrepreneurs Index: https://www.cesindex.com/
• SEC Filings: https://www.sec.gov/edgar/search/