Motley Fool launches 2 new ETFs
âWe created these ETFs with investor demand in mind,â Kelsey Mowrey, chairman of Motley Fool Asset Management said in the press release. “Both ETFs are designed to be practical and profitable vehicles for people who wish to be exposed to stock recommendations made by analysts at Motley Fool through Fooldom.”
Mowrey went on to explain that the universe of recommendations that the new Motley Fool ETFs come from is made up of companies in the United States that are either among the top 150 U.S. companies rated in the Motley Fool analyst database or actively recommended. in a Motley report. Crazy newsletter.
the Motley Fool 100 Capital Efficiency Index AND F (TMFE) seeks to track the Capital Efficiency 100 Index, a rules-based index that tracks the performance of top-rated U.S. companies based on their capital efficiency, a measure of a company’s ability to convert investments into income, and in profits. By measuring this metric, analysts are able to better understand a company’s ROI.
The weighting within the index is determined by multiplying the company’s share in the aggregate market value of all companies in the index by the company’s capital efficiency score, with a maximum weighting of 5%. The capital efficiency score takes into account measures of growth, profitability and stability, with the top 100 stocks selected based on the index continuity rules.
The fund may hold securities of any market capitalization and may also seek to increase its income by lending securities.
the Motley Fool Next Index AND F (TMFX) seeks to track the Next Index, a rules-based index that tracks the performance of US small and mid-cap companies within the Recommended Universe. Included securities must meet the requirements of the Motley Fool 100 Index, a proprietary rules-based index that tracks the 100 largest and most liquid US companies within the Recommended Universe.
The Next Index excludes the 100 largest stocks in the Motley Fool 100 Index and may contain companies of any market capitalization, but generally consists of primarily small and mid-capitalization stocks. The weighting within the index is determined by the company’s share of the aggregate market value of all the companies in the Next Index.
The fund may seek to increase its income by lending securities.
Both funds have an expense ratio of 0.50% and follow the recent conversion of two of Motel Fool Asset Management’s mutual funds to ETFs earlier in December.
âThese new ETFs, as well as our existing Motley Fool 100 index AND F, are passive-only implementations of The Motley Fool’s active stock recommendations, âMowrey said in the press release. âMotley Fool Asset Management is prepared to build on its current product line by bringing these types of new products to investors. “
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