Motley Fool Capital Efficiency 100 Index ETF (TMFE)

Overview of ETF Motley Fool Capital Efficiency 100 Index ETF (MFO)

Objective: To track the performance of the Motley Fool Capital Efficiency 100 Index, which measures the performance of the 100 most capital-efficient companies in the Russell 1000.

Issuer: Motley Fool Asset Management

• Reputation and Reliability: Motley Fool is a well-established financial media and investment research company with a strong reputation for its research and analysis.
• Management: The ETF is managed by Motley Fool Asset Management, a subsidiary of Motley Fool. The team has extensive experience in identifying and investing in high-quality companies.

Profile:

• Primary Focus: Large-cap stocks with high capital efficiency.
• Asset Allocation: 100% equity
• Investment Strategy: Passive, passively tracks the Motley Fool Capital Efficiency 100 Index.

Market Share: This ETF is a relatively new entrant, launched in 2023, and does not have a significant market share yet.

Total Net Assets: As of November 2023, the ETF has approximately $25 million in assets under management.

Moat:

• Unique Strategy: The ETF focuses on capital efficiency, a distinct measure of a company's ability to generate returns on invested capital.
• Superior Management: The ETF is managed by the experienced team at Motley Fool Asset Management.

Financial Performance:

• Historical Performance: The ETF is relatively new, so its historical performance is limited. However, since its inception in March 2023, it has outperformed the S&P 500 by a small margin.
• Benchmark Comparison: The ETF tracks the Motley Fool Capital Efficiency 100 Index, so its performance is directly comparable to the index.

Growth Trajectory: The ETF is expected to grow as investors become more aware of the benefits of investing in capital-efficient companies.

Liquidity:

• Average Trading Volume: The ETF has an average daily trading volume of roughly 50,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically around 0.1%.

Market Dynamics: The ETF's performance is primarily driven by the performance of large-cap stocks and the overall market conditions.

Competitors:

• iShares Russell 1000 Growth ETF (IWF)
• Vanguard S&P 500 Growth ETF (VOOG)

Expense Ratio: 0.5%

Investment Approach and Strategy:

• Strategy: Passively tracks the Motley Fool Capital Efficiency 100 Index.
• Composition: Holds a diversified portfolio of 100 large-cap stocks selected based on their capital efficiency.

Key Points:

• Invests in high-quality companies with strong capital efficiency.
• Offers a unique strategy that focuses on capital efficiency.
• Managed by an experienced team at Motley Fool Asset Management.
• Relatively new ETF with a growing track record.

Risks:

• Volatility: The ETF is exposed to the volatility of the stock market.
• Market Risk: The ETF's performance is tied to the performance of large-cap stocks.

Who Should Consider Investing:

• Investors looking for exposure to large-cap stocks with high capital efficiency.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI: 8/10

Justification: The AI-based rating considers various factors, including the ETF's historical performance, management team, investment strategy, and competitive landscape. The MFO ETF receives a high rating due to its strong management team, unique investment strategy, and potential for growth.

Resources and Disclaimers:

• Motley Fool Capital Efficiency 100 Index ETF website: https://www.fool.com/investing/etfs/fool-100-etf/
• Morningstar: https://www.morningstar.com/etfs/arcx/mfo/quote
• ETF.com: https://www.etf.com/etfanalytics/etf-profile/mfo

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