Past performance doesn’t always repeat, but the Entrepreneur 30 Fund (ENTR) is starting to turn heads. After surging in 2020, the ERShares ETF is off to a strong start this year.
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).
As of Jan. 20, ENTR was up almost 10% year-to-date, topping its Morningstar category average by 173 basis points. That’s saying something because there nearly 1,330 funds in that category.
ENTR “invests in the 30 largest U.S. public firms that meet several standards, including profitability, minimum revenue, revenue growth and low executive turnover, among others,” reports InvestorPlace.
Breaking Down ENTR's Impressive History
ENTR beating its category average isn’t new. Over the past year, the ERShares fund is up north of 54%, or more than double the category average. Over the past three years, ENTR has beaten its peer group by more than quadruple.
The fund screens factors such as management, which requires set factors regarding a company’s management must be met for a company to be included, such as the turnover among the top five executives within a company as compared to other companies in the broader universe.
The compensation screen requires set factors such as annual compensation, salary, bonus, stock options, and other compensation criteria be met for a company to be included.
While some ENTR components “currently have frothy valuations, they have also become household names. Therefore, we can expect investor interest in them to continue next year, too. In 2020, ENTR was up over 43%. The price is currently hovering around $26, Any decline below $25, and especially toward $22.5, would make the price attractive for the long term,” according to InvestorPlace.
ERShares incorporates a bottom-up investment orientation, powered by artificial intelligence, that stands above other investment factors such as momentum, sector, growth, value, leverage, market cap (size), and geographic orientation. With the aid of AI and Thematic Research, ERShares incorporates a macro-economic, top-down approach that integrates changing investment flows, innovation entry points, sector growth, and other characteristics into a dynamic, global perspective model. Finally, ERShares backs the companies with the best entrepreneurial minds that invest in the right technology for a sustainable and better future.
For more on entrepreneurial strategies, visit our Entrepreneur ETF Channel.