Motley Fool Asset Management Plans Major ETF Expansion
Motley Fool Asset Management, a business owned by the popular personal finance publication The Motley Fool, is planning a significant expansion of its Exchange Traded Funds (ETFs). The company has filed for Securities and Exchange Commission (SEC) approval for 15 new ETFs, aiming to more than triple its current ETF offerings.
A Broader Suite of Investment Options
The new ETFs will significantly broaden Motley Fool Asset Management's investment options beyond its existing three active and three passive ETFs. The planned expansion includes themes like equal weight and low volatility, designed to cater to a wider range of investor risk profiles and asset allocations.
“When we talk to advisors and investors, we know that every investor comes to the table with a different risk factor and set of assets they own,” said Bill Mann, chief investment strategist at Motley Fool Asset Management. “The funds that we now have provide good service to certain types of investors, but we wanted to come out with a much broader suite that will allow Motley Fool Asset Management to meet people where they are.”
Index-Based Approach
The firm plans a gradual rollout of the 15 new ETFs, pending SEC approval. Notably, the new line of funds will be index-based, meaning no additional asset-management staff will be required. Mann explained that once an index is designed, it essentially "runs itself."
Motley Fool's Entry into the ETF Market
Motley Fool Asset Management launched in 2008, seeking to offer investors a more disciplined approach during market downturns, addressing the tendency of individual investors to exit holdings at inopportune times. The company currently manages a $2.5 billion ETF line.
Current and Forthcoming ETF Products
The company's existing ETF line includes both active and passive investment products:
- Active ETFs (converted from mutual funds): The Motley Fool Global Opportunities ETF (TMFG), Small-Cap Growth ETF (TMFS), and Mid-Cap Growth ETF (TMFM).
- Passive ETFs: The Motley Fool 100 Index ETF (TMFC), Capital Efficiency 100 Index ETF (TMFE), and Next Index ETF (TMFX).
List of the Forthcoming ETFs
The new ETF suite will include a variety of investment strategies:
- The Motley Fool Aggressive Growth Factor
- Smart Volatility Factor
- Crowdsource
- 100 Equal Weight
- Value Factor
- Next Equal Weight
- Enhanced Income
- 100 Minimum Volatility
- International Opportunities
- Next Minimum Volatility
- Large Cap Growth
- Rising 100
- Momentum Factor
- Rising 100 Minimum Volatility
- Multi Factor ETFs
A Wider Audience and Proprietary Research
The forthcoming ETFs are designed to appeal to a broader investor base. They will invest in stocks selected using The Motley Fool's proprietary research, leveraging the company's expertise in stock analysis developed over more than 30 years.
