Running Oak Efficient Growth ETF (RUNN)

ETF Running Oak Efficient Growth ETF Summary

Profile

ETF Running Oak Efficient Growth ETF (Ticker: RUNO) is an actively managed ETF that aims to provide investors with long-term capital appreciation by investing in a diversified portfolio of US equities. The ETF employs a quantitative, rules-based investment strategy to identify and select stocks with strong growth potential. RUNO focuses on small- and mid-cap companies across various sectors, with an emphasis on companies with strong fundamentals, robust balance sheets, and favorable growth prospects.

Objective

The primary investment goal of RUNO is to achieve long-term capital growth through a combination of stock price appreciation and dividend income. The ETF seeks to outperform its benchmark index, the Russell 2500 Growth Index, over a full market cycle.

Issuer

RUNO is issued by Running Oak Capital Management, a privately-held investment management firm founded in 2015. Running Oak specializes in quantitative investment strategies and manages a range of investment products, including mutual funds and separately managed accounts.

Reputation and Reliability:

Running Oak has a relatively short track record, having been established in 2015. However, the firm's management team has extensive experience in quantitative investing and has a strong reputation for delivering solid investment performance.

Market Share and Total Net Assets:

RUNO's market share in the small- and mid-cap growth ETF space is relatively small, with approximately $100 million in total net assets as of October 27, 2023.

Moat and Competitive Advantages:

RUNO's competitive advantage lies in its unique investment strategy and its team's expertise in quantitative analysis. The ETF's focus on small- and mid-cap companies offers the potential for higher growth compared to larger-cap stocks, while its quantitative approach allows for efficient and objective stock selection.

Financial Performance:

RUNO has a relatively short track record, making it difficult to assess its long-term performance. However, since its inception in 2020, the ETF has delivered competitive returns, outperforming its benchmark index in most periods.

Growth Trajectory:

The ETF's growth trajectory is positive, with increasing assets under management and strong performance. However, it's still early to predict its long-term growth potential.

Liquidity:

RUNO has moderate liquidity, with an average daily trading volume of around 10,000 shares. The bid-ask spread is relatively tight, indicating efficient trading.

Market Dynamics:

The ETF's market environment is primarily affected by factors like economic growth, interest rates, and investor sentiment towards small- and mid-cap stocks.

Competitors:

RUNO's key competitors in the small- and mid-cap growth ETF space include iShares Russell 2500 Growth ETF (IWO), Vanguard Russell 2500 Growth ETF (VTWO), and Invesco S&P SmallCap 600 Growth ETF (RZG).

Expense Ratio:

RUNO's expense ratio is 0.75%, which is competitive compared to other actively managed small- and mid-cap growth ETFs.

Investment Approach and Strategy:

RUNO employs an active, quantitative investment strategy to select stocks with high growth potential. The ETF uses a proprietary algorithm to analyze various financial metrics and identify companies with strong fundamentals, favorable growth prospects, and attractive valuations.

Key Points:

• Actively managed ETF focusing on small- and mid-cap growth stocks.
• Quantitative investment strategy based on fundamental analysis.
• Competitive performance and moderate liquidity.
• Relatively short track record and small market share.

Risks:

• Market risk: RUNO's holdings are subject to market fluctuations, which can cause significant price swings.
• Small-cap risk: Small-cap stocks are generally more volatile than large-cap stocks, increasing the risk of losses.
• Active management risk: The ETF's performance is dependent on the success of its investment team's stock selection.

Who Should Consider Investing:

RUNO is suitable for investors seeking long-term capital appreciation through exposure to small- and mid-cap growth stocks. It's important for investors to have a high risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of RUNO's financial health, market position, and future prospects, the ETF receives a Fundamental Rating of 7.5 out of 10. This rating considers factors like the ETF's performance, expense ratio, liquidity, and the experience of its management team. RUNO's strong performance and competitive expense ratio are positive factors, while its small market share and short track record are mitigating factors.

Resources and Disclaimers:

• ETF website: https://www.runningetoakcapital.com/etfs/runo/
• Morningstar: https://www.morningstar.com/etfs/xnas/runo
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.