Motley Fool Innovative Growth Factor ETF (MFIG)

Overview

MFIG is a passively managed investment fund designed to track companies within the United States that are anticipated to achieve earnings or revenue growth at a rate faster than the general market's expectations over the long term. The fund utilizes a systematic selection process to identify high-conviction stocks from the Motley Fool recommended universe, focusing on a select group of approximately 70 to 100 companies determined by a specific growth formula. This selection is based on a combination of three proprietary scores that assess gross profit growth, gross profit innovation, and various growth potential factors, including brand strength, knowledge assets, and human capital. MFIG adheres to a quarterly rebalancing schedule but is open to concentrating its investments within certain industries, thereby potentially enhancing returns. Additionally, the fund may utilize securities lending as a strategy to increase its income generation.

Products and Services

• Index Fund Tracking

  MFIG primarily acts as an index fund, passively tracking a curated list of US companies selected from the Motley Fool’s recommendations. This tracking mechanism allows investors to gain exposure to growth-oriented stocks without the need for active management.

• Growth-Focused Selection Criteria

  The fund employs proprietary scoring metrics to identify companies with strong growth potential. These criteria include measurements of gross profit growth, innovation capacity, and overall growth potential, ensuring that selected stocks are likely to outperform market expectations.

• Quarterly Rebalancing

  MFIG conducts quarterly rebalancing of its holdings to align with the latest market conditions and growth potential of the selected companies. This process helps maintain the fund’s commitment to tracking the most promising growth stocks.

• Concentration in Target Industries

  While maintaining a diversified portfolio, MFIG may choose to concentrate its investments within specific industries that show elevated growth potential. This strategic focus can lead to higher returns in sectors that are experiencing rapid expansion.

• Securities Lending

  To augment income, MFIG may participate in securities lending. This service involves lending out shares to other investors or institutions in exchange for a fee, providing an additional revenue stream that can benefit the overall return of the fund.