On Friday, Rockefeller Asset Management released its first equity ETF, the SMIDcap Rockefeller U.S. Small-Mid Cap ETF (RSMC ).
RSMC is an actively managed fund with a net expense ratio of 0.75%. The fund’s goal is to generate capital growth with a long-term horizon.
Primarily. RSMC allocates its assets towards small and mid cap U.S. equities. These can include common stock, American Depositary Receipts (ADRs), and Global Depositary Receipts (GDRs), among others.
SMIDcap Long-Term Growth Portfolio
During the security selection process, RSMC’s portfolio team looks for companies with a number of beneficial characteristics. In part, the team expects assets within the portfolio to have strong competitive advantages, with great potential to grow earnings, cash flow, and revenue.
On the topic of revenue, RSMC also seeks to focus on companies that have strong balance sheets. An emphasis on businesses with high-quality management teams rounds out these positive traits.
When it comes to purchasing new additions to the portfolio, RSMC seeks to buy assets when they are at attractive prices compared to their standing and growth potential. Generally speaking, the fund holds assets through their stages of growth.
Per the fund prospectus, RSMC may opt to sell securities within its assets for a number of reasons. These include changes in a company’s fundamentals, market cap, or intrinsic valuation, among others.
The fund will predominantly invest in small and mid cap companies, it may invest outside this cap spectrum. It may allocate up to 20% of RSMC’s net assets in such a manner.
The long-term fund strategy for RSMC can be bolstered through Rockefeller’s active portfolio management team. An actively managed ETF can help investors better adapt to shifting conditions in both the market and the broader economy.
RSMC enters the market as Rockefeller Asset Management’s fourth ETF. Currently, Rockefeller’s ETFs represent over $87 million in assets under management.
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