Motley Fool Asset Management, a subsidiary of Motley Fool Holdings, which also owns the popular investing website MotleyFool.com, rolled out three new ETFs Tuesday. The passively managed single-factor funds launched on the Nasdaq exchange and include the following:
The funds all have an expense ratio of 0.50%. They track indexes that reflect Motley Fool’s “evidence-based investing principles” in the composite factor scores used to select their holdings.
“As investors look for long-term, consistent approaches to diversification, we’re meeting that demand with strategies rooted in data, not emotion,” Motley Fool Asset Management Chief Investment Officer Tony Arsta said.
“Each of these ETFs represents a disciplined framework for accessing the same investment factors our analysts have relied on for decades — value, momentum, and innovation, in a transparent, cost-efficient way,” he added.
MFIG’s underlying index incorporates scores for gross profit growth, gross profit innovation and growth potential. Meanwhile, MFVL looks to steer away from value traps and relies on adjusted book-to-price, gross profits-to-EV and total shareholder yield. Finally, MFMO assigns scores to companies based on composite price momentum, factor momentum and adjusted price-to-low ratio. Each fund’s index has a target number of 150 holdings, according to their prospectus.
The new ETFs are the first new additions to the Motley Fool Lineup in nearly four years. They are part of an expansion of its lineup announced by the company in September that is expected to ultimately include 15 new ETFs in all.
Prior to today’s launches, Motley Fool Asset Management offered six ETFs. Those cover a variety of passive and active strategies and hold more than $2.5 billion in total assets under management. Its largest ETF is the Motley Fool 100 Index ETF (TMFC), with $1.9 billion.
VettaFi LLC (“VettaFi”) is the index provider for MFIG, MFVL and MFMO, for which it receives an index licensing fee. However, MFIG, MFVL and MFMO are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of MFIG, MFVL and MFMO.
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