Running Oak Efficient Growth ETF (RUNN)RUNN

ETF Summary: Running Oak Efficient Growth ETF

Profile

Running Oak Efficient Growth ETF (RUN) is an actively managed ETF that seeks to capture the substantial beta of growth stocks while mitigating the corresponding volatility. The ETF aims to achieve this through a proprietary quantitative model that seeks to identify companies with superior growth potential and manage portfolio risk using options strategies.

The ETF's asset allocation focuses primarily on US-listed equities across various sectors with a growth investment style. RUN employs a dynamic approach, adjusting its exposure to growth and value factors based on market conditions.

Objective

The primary investment goal of RUN is to provide long-term capital appreciation by investing in a diversified portfolio of growth stocks while aiming to reduce volatility compared to a traditional growth stock portfolio.

Issuer

Running Oak Capital Management LLC

• Reputation and Reliability:

Running Oak Capital Management is a relatively new asset management firm founded in 2021. Despite its young age, the firm has garnered a positive reputation for its quantitative investment approach and innovative strategies. The firm's founders have extensive experience in quantitative finance and portfolio management.

• Management:

The ETF is managed by a team of experienced portfolio managers led by Dr. Michael van Biema, the firm's Co-Founder and Chief Investment Officer. Dr. van Biema has over 20 years of experience in quantitative finance and has previously held positions at prestigious institutions like Goldman Sachs and Renaissance Technologies.

Market Share

As of October 26, 2023, RUN has approximately $250 million in assets under management, representing a small market share in the actively managed growth ETF segment.

Total Net Assets

As of October 26, 2023, RUN has approximately $250 million in total net assets.

Moat

• Proprietary Quantitative Model: RUN's unique investment approach leverages a proprietary quantitative model to identify high-growth companies and manage risk through options strategies. This model offers a potential competitive advantage in identifying undervalued growth opportunities.
• Experienced Management Team: The ETF's management team combines expertise in quantitative finance and portfolio management, providing investors with confidence in their ability to navigate market complexities.

Financial Performance

• Historical Returns: Since its inception in 2022, RUN has delivered a total return of 15%, outperforming the S&P 500 index by 5%.
• Benchmark Comparison: RUN has consistently outperformed the S&P 500 Growth Index, demonstrating its effectiveness in capturing growth potential while mitigating volatility.

Growth Trajectory

RUN's recent performance and unique investment approach suggest a potential for continued growth as investors increasingly seek alternative strategies to navigate market volatility.

Liquidity

• Average Trading Volume: RUN has an average daily trading volume of approximately 50,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread for RUN is around 0.05%, indicating relatively low transaction costs.

Market Dynamics

• Economic Indicators: Rising interest rates and inflation could pose challenges for growth stocks, potentially impacting RUN's performance.
• Sector Growth Prospects: The technology and healthcare sectors, which are heavily represented in growth portfolios, are expected to maintain strong growth potential, benefiting RUN.
• Current Market Conditions: Market volatility and geopolitical uncertainty could create opportunities for RUN's risk management strategies.

Competitors

• iShares S&P 500 Growth ETF (IVW) - 40% market share
• Invesco QQQ Trust (QQQ) - 35% market share
• Vanguard Growth ETF (VUG) - 20% market share

Expense Ratio

The expense ratio for RUN is 0.75%, which is slightly higher than the average for actively managed growth ETFs.

Investment Approach and Strategy

• Strategy: RUN employs an active management strategy, utilizing a quantitative model to select growth stocks and options strategies to manage risk.
• Composition: The ETF primarily invests in US-listed equities across various sectors with a growth investment style. The portfolio holds a mix of large, mid, and small-cap companies.

Key Points

• Actively managed ETF with a focus on growth stocks and volatility reduction.
• Employs a proprietary quantitative model for security selection.
• Experienced management team with a strong track record.
• Outperformed benchmark index historically.
• Moderate liquidity and slightly higher expense ratio.

Risks

• Volatility: Growth stocks tend to be more volatile than value stocks, potentially impacting RUN's returns.
• Market Risk: The ETF's performance is directly linked to the performance of its underlying growth stocks, which are susceptible to market fluctuations.
• Active Management Risk: The ETF's success relies heavily on the effectiveness of its quantitative model and the management team's ability to implement the strategy.

Who Should Consider Investing?

RUN is suitable for investors seeking:

• Long-term capital appreciation through growth stocks.
• A strategy that aims to mitigate volatility compared to a traditional growth stock portfolio.
• Exposure to a diversified portfolio of US equities.
• An actively managed ETF with a quantitative approach.

Investors should be comfortable with the potential for higher volatility and the risks associated with growth stocks.

Fundamental Rating Based on AI: 7.5

RUN receives a fundamental rating of 7.5 based on its AI analysis. The rating considers the ETF's unique investment approach, experienced management team, and historical performance. However, the relatively small asset base, moderate liquidity, and slightly higher expense ratio contribute to a slightly lower score.

Resources and Disclaimers

Data Sources:

• ETF.com
• Running Oak Capital Management website
• YCharts

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting thorough due diligence.