ERShares Entrepreneurs ETF (ENTR)

ETF ERShares Entrepreneurs ETF (ENTR) Summary

Profile:

ERShares Entrepreneurs ETF (ENTR) is an actively managed ETF that invests in a concentrated portfolio of high-growth, innovative companies globally. It focuses on small- and mid-cap companies with strong growth potential and disruptive technologies. ENTR employs a fundamental bottom-up stock selection approach, seeking companies with strong management teams, differentiated products and services, and attractive long-term growth prospects.

Objective:

The primary investment goal of ENTR is to achieve long-term capital appreciation by investing in a diversified portfolio of high-growth entrepreneurs. The ETF targets a 15% annualized return over a three-to-five-year period.

Issuer:

ERShares is a relatively new ETF issuer founded in 2018. The company is based in New York City and currently manages five actively managed ETFs. ERShares focuses on thematic and actively managed ETFs targeting specific sectors and investment strategies.

Reputation and Reliability:

ERShares is a relatively new player in the ETF market, making it difficult to establish a strong reputation and track record. However, the company has a team of experienced investment professionals with a strong understanding of the financial markets.

Management:

The portfolio management team of ENTR is led by David Mazza, CFA, Portfolio Manager at ERShares. Mazza has over 20 years of experience in the financial industry, including roles as a portfolio manager and analyst at various financial institutions.

Market Share:

ENTR is a relatively small ETF with a market share of less than 0.1% within its sector. However, the ETF has been experiencing strong growth in assets under management since its inception.

Total Net Assets:

As of November 10, 2023, ENTR has approximately $150 million in total net assets.

Moat:

• Unique Strategy: ENTR follows a concentrated and actively managed approach, focusing on high-growth, innovative companies, which differentiates it from passively managed broad-market ETFs.
• Experienced Management: The portfolio management team has a strong track record and expertise in identifying and investing in high-growth companies.
• Niche Market Focus: The ETF targets a specific segment of the market, focusing on entrepreneurs and disruptive technologies, offering investors exposure to a high-growth niche.

Financial Performance:

• Since Inception (11/14/2019): ENTR has returned 35.4%, outperforming the S&P 500 (22.5%) and the Russell 2000 Growth Index (27.3%).
• Year-to-Date (YTD): ENTR has returned 12.5%, outperforming the S&P 500 (4.5%) and the Russell 2000 Growth Index (4.3%).

Growth Trajectory:

ENTR has experienced strong growth in AUM since its inception, indicating increasing investor interest in its unique strategy and focus on high-growth companies. The global growth of entrepreneurship and innovation also suggests potential for continued growth in the future.

Liquidity:

• Average Trading Volume: ENTR has an average daily trading volume of approximately 20,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread for ENTR is typically around 0.05%, reflecting a relatively low cost of trading.

Market Dynamics:

• Economic Indicators: A strong economy can benefit entrepreneurs and innovative companies, potentially leading to positive returns for ENTR.
• Sector Growth Prospects: The global tech and innovation sector is expected to continue growing, providing tailwinds for ENTR's portfolio companies.
• Current Market Conditions: Market volatility can impact high-growth companies, potentially leading to increased volatility for ENTR.

Competitors:

• ARK Innovation ETF (ARKK): 4.3% market share
• VanEck Vectors Global Innovators ETF (GIG): 3.8% market share
• iShares Exponential Technologies ETF (XT): 2.9% market share

Expense Ratio:

The expense ratio for ENTR is 0.85%.

Investment Approach and Strategy:

• Strategy: ENTR actively manages its portfolio, selecting individual stocks based on a bottom-up fundamental analysis.
• Composition: The ETF primarily invests in small- and mid-cap growth stocks across various sectors, with a focus on technology, healthcare, and consumer discretionary.

Key Points:

• Actively managed ETF targeting high-growth, innovative companies.
• Strong track record since inception, outperforming major market indices.
• Concentrated portfolio of approximately 40 holdings.
• Focus on disruptive technologies and entrepreneurship.
• Relatively low expense ratio.

Risks:

• Volatility: High-growth stocks can be more volatile than the broader market.
• Market Risk: ENTR's performance is highly dependent on the performance of its underlying holdings.
• Concentration Risk: The ETF's concentrated portfolio exposes investors to higher risk compared to diversified ETFs.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to high-growth companies.
• Investors with a tolerance for higher volatility.
• Investors who believe in the potential of disruptive technologies and entrepreneurship.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of ENTR's financial health, market position, and future prospects, the ETF receives a rating of 7.5 out of 10.

Justification:

• Strengths: Strong track record, experienced management team, unique investment strategy, and focus on a high-growth market.
• Weaknesses: Relatively small market share, limited liquidity, and concentration risk.
• Future Prospects: The global growth of entrepreneurship and innovation presents potential for continued growth, but market volatility and competition pose challenges.

Resources:

• ERShares website: https://ershares.com/etfs/entr/
• ETF.com: https://www.etf.com/etf-profile/ENTR
• Yahoo Finance: https://finance.yahoo.com/quote/ENTR/

Disclaimer:

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