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Trending ETFs

Name

As of 07/12/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$25.12

$42.4 M

0.37%

$0.09

0.50%

Vitals

YTD Return

21.5%

1 yr return

33.5%

3 Yr Avg Return

N/A

5 Yr Avg Return

N/A

Net Assets

$42.4 M

Holdings in Top 10

51.7%

52 WEEK LOW AND HIGH

$25.0
$17.67
$25.29

Expenses

OPERATING FEES

Expense Ratio 0.50%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover N/A

Redemption Fee N/A


Min Investment

Standard (Taxable)

N/A

IRA

N/A


Fund Classification

Fund Type

Exchange Traded Fund


Name

As of 07/12/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$25.12

$42.4 M

0.37%

$0.09

0.50%

TMFE - Profile

Distributions

  • YTD Total Return 21.5%
  • 3 Yr Annualized Total Return N/A
  • 5 Yr Annualized Total Return N/A
  • Capital Gain Distribution Frequency N/A
  • Net Income Ratio N/A
DIVIDENDS
  • Dividend Yield 0.4%
  • Dividend Distribution Frequency Annual

Fund Details

  • Legal Name
    Motley Fool Capital Efficiency 100 Index ETF
  • Fund Family Name
    N/A
  • Inception Date
    Dec 31, 2021
  • Shares Outstanding
    N/A
  • Share Class
    N/A
  • Currency
    USD
  • Domiciled Country
    US
  • Manager
    Bryan Hinmon

Fund Description

The Capital Efficiency Fund is an exchange-traded fund (“ETF”) and employs a “passive management” – or indexing – investment approach designed to track the total return performance, before fees and expenses, of the Capital Efficiency 100 Index. Motley Fool Asset Management, LLC (the “Adviser”) serves as the investment adviser to the Capital Efficiency Fund. The Capital Efficiency 100 Index was developed by The Motley Fool, LLC (“TMF”), an affiliate of the Adviser.

The Motley Fool Capital Efficiency 100 Index

The Capital Efficiency 100 Index was established by TMF in 2021 and is a proprietary, rules-based index designed to track the performance of the highest scoring stocks of U.S. companies, measured by a company’s capital efficiency, that have been recommended by TMF’s analysts and newsletters, and that also meet certain liquidity requirements. Capital efficiency is a measure of how a business turns its investments into revenue and profit and it provides insight into the company’s return on invested capital.

TMF’s “recommendation universe” includes all companies domiciled in the United States that are either active recommendations of a newsletter published by TMF or are among the 150 highest rated U.S. companies in TMF’s analyst opinion database, subject to universe continuity rules. With respect to universe continuity, the Capital Efficiency 100 Index is constructed utilizing a buffering methodology. The buffer is intended to reduce index turnover from movements in constituent weightings that could result in a company dropping out of the index only to be added back with the next rebalance. Specifically, stocks ranked in the top 105 positions based on TMF’s analyst opinion database (70% of the 150-stock target) are automatically included in the candidate universe. Additionally, companies that were previously eligible based on their TMF analyst ratings will still be included as long as their rank is equal to or better than 195 (130% of the 150-stock target). Stocks are then added based on conviction score rank until the 150-stock target is reached.

Company shares that meet the requirements for universe inclusion must also meet the minimum requirements for liquidity and for calculating the Capital Efficiency Factor Score (defined herein). Specifically, the liquidity requirements mandate that at least $1 million worth of a company’s shares trade daily, on average, during the preceding three months. With respect to calculating capital efficiency, a company must report gross profits (or net revenues for financial companies) and meet a minimum total assets threshold as of the most recent filing prior to each index weighting date. TMF’s proprietary Capital Efficiency Factor Score is a composite score that incorporates growth, profitability, and stability metrics in assessing a company’s capital efficiency. To determine final index membership, candidate stocks are first ranked based on their composite scores. The top 100 stocks are then selected based on index continuity rules.

Each selected company’s share of the Capital Efficiency 100 Index (or “weighting”) is set to equal the company’s share of all Capital Efficiency 100 Index companies’ aggregate market value multiplied by their respective Capital Efficiency Factor Scores. A maximum position size limit of 5% is also enforced (tested at the time of rebalancing and subject to index continuity rules). The Capital Efficiency 100 Index is reconstituted and rebalanced quarterly.

The Capital Efficiency 100 Index will typically include 100 companies at any one time and may contain companies of any size capitalization.

The Capital Efficiency 100 Index is calculated and administered by Solactive AG (the “Index Calculation Agent”), which is not affiliated with the Capital Efficiency Fund, the Adviser or TMF. Additional information regarding the Capital Efficiency 100 Index, including its value, is available on the websites of the Capital Efficiency 100 Index at www.foolindices.com and the Index Calculation Agent, at www.solactive.com.

The Capital Efficiency Fund’s Investment Strategy

Under normal circumstances, at least 80% of the Capital Efficiency Fund’s total assets (exclusive of any collateral held from securities lending) will be invested in the component securities of the Capital Efficiency 100 Index. The Adviser expects that, over time, if it has sufficient assets, the correlation between the Capital Efficiency Fund’s performance and that of the Capital Efficiency 100 Index, before fees and expenses, will be 95% or better.

The Capital Efficiency Fund will generally use a “replication” strategy to achieve its investment objective, meaning it generally will invest in all of the component securities of the Capital Efficiency 100 Index. However, the Capital Efficiency Fund may use a “representative sampling” strategy, meaning it may invest in a sample of the securities in the Capital Efficiency 100 Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Capital Efficiency 100 Index as a whole, when the Adviser believes it is in the best interests of the Capital Efficiency Fund (e.g., when replicating the Capital Efficiency 100 Index involves practical difficulties or substantial costs, a Capital Efficiency 100 Index constituent becomes temporarily illiquid, unavailable or less liquid, or as a result of legal restrictions or limitations that apply to the Capital Efficiency Fund but not to the Capital Efficiency 100 Index).

The Capital Efficiency Fund generally may invest up to 20% of its total assets (exclusive of any collateral held from securities lending) in securities or other investments not included in the Capital Efficiency 100 Index, but which the Adviser believes will help the Capital Efficiency Fund track the Capital Efficiency 100 Index. For example, the Capital Efficiency Fund may invest in securities that are not components of the Capital Efficiency 100 Index to reflect various corporate actions and other changes to the Capital Efficiency 100 Index (such as reconstitutions, additions and deletions).

The Capital Efficiency Fund is non-diversified for the purposes of the Investment Company Act of 1940, as amended (“1940 Act”), which means that the Capital Efficiency Fund may invest in fewer securities at any one time than a diversified fund. To the extent the Capital Efficiency 100 Index concentrates (i.e., holds more than 25% of its total assets) in the securities of a particular industry, the Capital Efficiency Fund will concentrate its investments to approximately the same extent as the Capital Efficiency 100 Index.

The Capital Efficiency Fund may also seek to increase its income by lending securities.

The Capital Efficiency Fund has elected to be, and intends to continue to qualify each year for treatment as a regulated investment company (“RIC”) under Subchapter M of Subtitle A, Chapter 1, of the Internal Revenue Code of 1986, as amended (the “Code”).

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TMFE - Performance

Return Ranking - Trailing

Period TMFE Return Category Return Low Category Return High Rank in Category (%)
YTD 21.5% -44.2% 26.6% 93.48%
1 Yr 33.5% -98.5% 150.0% N/A
3 Yr N/A* -74.2% 26.3% N/A
5 Yr N/A* -61.2% 23.2% N/A
10 Yr N/A* -35.6% 18.2% N/A

* Annualized

Return Ranking - Calendar

Period TMFE Return Category Return Low Category Return High Rank in Category (%)
2023 40.5% -98.8% 81.6% N/A
2022 -26.1% -39.5% 48.7% N/A
2021 N/A -13.0% 34.8% N/A
2020 N/A -27.1% 10.6% N/A
2019 N/A -15.9% 33.2% N/A

Total Return Ranking - Trailing

Period TMFE Return Category Return Low Category Return High Rank in Category (%)
YTD 21.5% -44.2% 26.6% 95.34%
1 Yr 33.5% -98.5% 150.0% N/A
3 Yr N/A* -74.2% 32.9% N/A
5 Yr N/A* -61.2% 22.9% N/A
10 Yr N/A* -35.6% 18.3% N/A

* Annualized

Total Return Ranking - Calendar

Period TMFE Return Category Return Low Category Return High Rank in Category (%)
2023 41.1% -98.8% 81.6% N/A
2022 -25.8% -39.5% 48.7% N/A
2021 N/A -13.0% 34.8% N/A
2020 N/A -16.8% 10.6% N/A
2019 N/A -15.9% 35.6% N/A

TMFE - Holdings

Concentration Analysis

TMFE Category Low Category High TMFE % Rank
Net Assets 42.4 M 189 K 222 B 94.72%
Number of Holdings 101 2 3509 25.10%
Net Assets in Top 10 17.7 M -1.37 M 104 B 93.02%
Weighting of Top 10 51.66% 9.4% 100.0% 31.43%

Top 10 Holdings

  1. NVIDIA Corp 7.13%
  2. Meta Platforms Inc 6.41%
  3. Amazon.com Inc 5.18%
  4. Walmart Inc 5.12%
  5. Microsoft Corp 5.01%
  6. Visa Inc 4.93%
  7. Broadcom Inc 4.79%
  8. Alphabet Inc 4.59%
  9. Mastercard Inc 4.35%
  10. Apple Inc 4.16%

Asset Allocation

Weighting Return Low Return High TMFE % Rank
Stocks
99.64% 0.00% 107.71% 50.96%
Cash
0.36% -10.83% 87.35% 45.97%
Preferred Stocks
0.00% 0.00% 4.41% 13.12%
Other
0.00% -2.66% 17.15% 19.19%
Convertible Bonds
0.00% 0.00% 1.94% 7.52%
Bonds
0.00% -1.84% 98.58% 6.75%

Stock Sector Breakdown

Weighting Return Low Return High TMFE % Rank
Utilities
0.00% 0.00% 16.07% 32.64%
Technology
0.00% 0.00% 69.82% 59.91%
Real Estate
0.00% 0.00% 29.57% 67.51%
Industrials
0.00% 0.00% 30.65% 62.52%
Healthcare
0.00% 0.00% 39.76% 10.37%
Financial Services
0.00% 0.00% 43.06% 34.02%
Energy
0.00% 0.00% 41.09% 54.84%
Communication Services
0.00% 0.00% 66.40% 25.35%
Consumer Defense
0.00% 0.00% 25.50% 46.31%
Consumer Cyclical
0.00% 0.00% 62.57% 62.67%
Basic Materials
0.00% 0.00% 22.00% 62.29%

Stock Geographic Breakdown

Weighting Return Low Return High TMFE % Rank
US
99.64% 0.00% 105.43% 17.34%
Non US
0.00% 0.00% 54.22% 86.49%

TMFE - Expenses

Operational Fees

TMFE Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 0.50% 0.01% 7.09% 87.39%
Management Fee 0.50% 0.00% 1.50% 22.85%
12b-1 Fee N/A 0.00% 1.00% 1.04%
Administrative Fee N/A 0.00% 1.02% N/A

Sales Fees

TMFE Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A 0.00% 8.50% N/A
Deferred Load N/A 1.00% 5.00% N/A

Trading Fees

TMFE Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A 1.00% 5.00% N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

TMFE Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover N/A 0.00% 316.74% N/A

TMFE - Distributions

Dividend Yield Analysis

TMFE Category Low Category High TMFE % Rank
Dividend Yield 0.37% 0.00% 19.33% 18.37%

Dividend Distribution Analysis

TMFE Category Low Category High Category Mod
Dividend Distribution Frequency Annual Annually Monthly Annually

Net Income Ratio Analysis

TMFE Category Low Category High TMFE % Rank
Net Income Ratio N/A -6.13% 2.90% N/A

Capital Gain Distribution Analysis

TMFE Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually

Distributions History

View More +

TMFE - Fund Manager Analysis

Managers

Bryan Hinmon


Start Date

Tenure

Tenure Rank

Dec 30, 2021

0.42

0.4%

Bryan Hinmon is the Chief Investment Officer and Senior Portfolio Manager at Motley Fool Asset Management, LLC, as well as Chairman of the Investment Committee for the Funds. As CIO of the firm, Mr. Hinmon is responsible for leading the investment team, maintaining the firm’s investment philosophy, and managing client assets. He also works as an analyst, identifying and researching investments for the firm’s affiliate, Motley Fool Wealth Management’s separately managed account strategies. He joined Motley Fool Asset Management, LLC in 2014 after more than four years at The Motley Fool, LLC, where he helped manage Motley Fool Pro, a long/short and options portfolio service. Mr. Hinmon also served as a senior analyst on Motley Fool Options for more than four years and led the company’s Analyst Development Program for two years. Before life at The Motley Fool, Mr. Hinmon was a portfolio manager at Bulwark Capital Management, a hedge fund with an approach that balanced fundamental long-term equity investing, option income, and special situations. Earlier in his career, he worked as a research analyst for an asset manager in Naples, Florida, that provided portfolio management and operated a covered-call hedge fund. Mr. Hinmon graduated from Stetson University with a bachelor’s degree in finance. He holds the Chartered Financial Analyst designation and is a member of The Boston Security Analysts Society.

Anthony Arsta


Start Date

Tenure

Tenure Rank

Dec 30, 2021

0.42

0.4%

Tony Arsta is a Portfolio Manager at the Adviser, having served in that role for the open-end mutual funds managed by the Adviser starting in 2009. Tony Arsta, is a senior analyst for equity research at Motley Fool Asset Management, LLC . He has served as research analyst for the Motley Funds. Mr. Arsta complements his value-investing focus with applications of statistical analysis and investor psychology. After joining The Motley Fool in 2008, he contributed his writing and analysis to Motley Fool Million Dollar Portfolio, as well as several other Foolish newsletter services. Mr. Arsta earned his M.B.A. with distinction from DePaul University, with a concentration in finance, and also holds a B.S. in computer science from the University of Wisconsin, Madison.

Tenure Analysis

Category Low Category High Category Average Category Mode
0.04 54.45 8.09 2.92