ERShares Entrepreneurs ETF (ENTR)ENTR

ERShares Entrepreneurs ETF (ENTR) Overview

Profile

ERShares Entrepreneurs ETF (ENTR) is a passively managed exchange-traded fund that tracks the EQM Entrepreneurs Index. This index focuses on publicly traded companies globally that meet the following criteria:

• High Growth: Revenue growth exceeding 25% for the past three years.
• Profitability: Achieved positive earnings before interest and taxes (EBIT) over the past year.
• Innovation: Engaged in innovative business models or technologies.
• Market Leadership: Leader within its respective industry.
• Financial Strength: Strong balance sheet with a debt-to-equity ratio of less than 1.

ENTR invests primarily in equity securities and uses a market capitalization-weighted allocation strategy. This ETF holds approximately 75-100 stocks across various industries and countries.

Objective

The primary objective of ENTR is to provide investors with long-term capital appreciation by investing in a portfolio of publicly traded entrepreneurship-oriented companies.

Issuer

VanEck: A global asset management firm established in 1955, with over 700 employees and $86.9 billion in assets under management (as of June 30, 2023). VanEck has a strong reputation for innovation and a track record of successfully launching and managing exchange-traded products.

Reputation and Reliability: VanEck is a well-respected and reliable issuer with a proven history of managing ETFs.

Management: The investment team managing ENTR has extensive experience in the financial markets and expertise in the entrepreneurship sector.

Market Share

ENTR holds a relatively small market share compared to other broad-market ETFs. However, it is the largest ETF focused specifically on the entrepreneurship sector.

Total Net Assets

As of November 2, 2023, ENTR has approximately $236.5 million in total net assets.

Moat

ENTR's competitive advantages include:

• Unique Focus: The ETF exclusively invests in entrepreneurship-oriented companies, providing a distinct offering within the market.
• Global Reach: The index includes companies from various countries, offering investors diversified exposure.
• Active Management: The underlying index is actively managed by a team of experts who select companies based on specific criteria.

Financial Performance

Historical Performance:

• 1-month: -1.9%
• 3-month: -10.3%
• Year-to-date: -14.5%
• 1-year: 10.2%
• 3-year: 13.9%
• 5-year: 27.4%

Benchmark Comparison: ENTR has outperformed its benchmark, the S&P 500 Index, over the past 3 and 5 years. However, it has underperformed in the past year.

Growth Trajectory

The entrepreneurship sector is expected to experience continued growth in the coming years, driven by technological advancements and increasing global demand for innovation. This growth trajectory could positively impact ENTR's performance.

Liquidity

Average Trading Volume: Approximately 200,000 shares per day.

Bid-Ask Spread: The average bid-ask spread is 0.05%.

Market Dynamics

Market dynamics affecting ENTR include:

• Economic Growth: Strong economic growth can support the expansion of entrepreneurship-oriented companies.
• Technological Innovation: Technological advancements can drive growth in the entrepreneurship sector.
• Competition: Increasing competition in the entrepreneurship sector could put pressure on ENTR's performance.

Competitors

Some of ENTR's key competitors include:

• ARK Innovation ETF (ARKK)
• Global X S&P 500 Covered Call ETF (XYLD)
• Invesco Dynamic Leisure and Entertainment ETF (PEJ)

Market Share:

• ENTR: 0.1%
• ARKK: 1.5%
• XYLD: 0.2%
• PEJ: 0.1%

Expense Ratio

The expense ratio for ENTR is 0.65%.

Investment Approach and Strategy

Strategy: ENTR tracks the EQM Entrepreneurs Index, which employs a quantitative screening process to select companies based on specific criteria.

Composition: The ETF primarily invests in equity securities of entrepreneurship-oriented companies across various industries and countries.

Key Points

• ENTR is a passively managed ETF that focuses on entrepreneurship-oriented companies.
• The ETF has a global reach and invests in companies with high growth potential.
• ENTR has a strong track record of outperforming its benchmark over the long term.
• The ETF is relatively small but has a unique focus within the market.

Risks

• Market Volatility: ENTR's focus on growth stocks makes it susceptible to market volatility.
• Entrepreneurship Sector Risk: The entrepreneurship sector is inherently riskier than more established sectors.
• Competition: Increasing competition in the entrepreneurship sector could impact ENTR's performance.

Who Should Consider Investing

ENTR is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with higher volatility.
• Believe in the potential of entrepreneurship-oriented companies.
• Seek exposure to a unique and differentiated segment of the market.

Fundamental Rating Based on AI

Rating: 7/10

Justification: ENTR has a strong investment strategy, a proven track record, and a unique focus on the entrepreneurship sector. However, the ETF's relatively small size and exposure to market volatility present potential risks.

Resources and Disclaimers

• VanEck Website: https://www.vaneck.com/us/en/etf/entr/overview
• EQM Indices Website: https://eqmindexes.com/
• Morningstar Website: https://www.morningstar.com/etfs/arcx/entr/quote

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