ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Entrepreneur ETF Channel
  2. Not Just Tech, Entrepreneurial Tech: The ENTR ETF
Entrepreneur ETF Channel
Share

Not Just Tech, Entrepreneurial Tech: The ENTR ETF

Tom LydonJan 28, 2021
2021-01-28

The Entrepreneur 30 Fund (ENTR B+) offers a unique, diversified approach to factor investing, and while it’s not a dedicated technology fund, its tech exposure remains meaningful.

The Entrepreneur 30 Fund tries to reflect the performance of the Entrepreneur 30 Index, which is comprised of 30 U.S. companies with the highest market capitalizations and composite scores based on six criteria referred to as entrepreneurial standards. ENTR primarily invests in US Large Cap companies that meet the thresholds embedded in their proprietary Entrepreneur Factor (EF).

Market observers have argued that tech is poised to thrive again this year. That could be constructive for ENTR.

“If part of the thesis for further stock gains is massive central bank liquidity, tech should benefit from this trend, particularly if volatility continues to fall,” according to BlackRock. “Since 2008 tech has generally outperformed when financial conditions are improving. The average outperformance is approximately 30-35 basis points (bps) a month. In months when volatility, measured by the VIX Index, is falling, average outperformance doubles. Why? Because long-duration assets, i.e. companies where cash flows are in the more distant future, benefit when financial conditions are easy and rates exceptionally low.”

ENTR 1 Year Performance

ENTR Taps Continuing Trends, and Adds a Few of Its Own

The growth style may be gaining momentum as investors turn to upbeat economic and earnings data, leading many to adopt a risk-on attitude. Since growth stocks show high multiples, investors may expect that the companies will sustain a high growth rate.

ENTR also includes sophisticated screens to weed out undesirable companies. The factors screened include management, which requires set factors regarding a company’s management, such as the turnover among the top five executives within a company compared to other companies in the broader universe. A profitability screen requires a company to meet predetermined criteria regarding net income over a static threshold to be included, including the company’s net income as compared to predetermined benchmarks.

“The pandemic accelerated several existing trends. As a result, many habits acquired during the pandemic are unlikely to fade,” notes BlackRock. “A good example of this is online shopping. Looking at domestic credit card data reveals an interesting pattern. As you would have expected, the share of spending going to online retailers spiked early in the pandemic. Less obvious was the staying power of this trend. Even as lockdowns eased, online retailer’s wallet share remained elevated relative to the pre-pandemic norm. In other words, even as consumer mobility returned, many households came to appreciate the convenience of services such as online grocery delivery.”

Finally, the consumer side of tech looks compelling for investors.

“Household tech spending increased by more than $100 billion, or 25%, in the six months between May and November. While some of the end-of-year bump was a function of early holiday spending, the trend is clear and has been in place for some time,” finishes BlackRock.

For more on entrepreneurial strategies, visit our Entrepreneur ETF Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X