How This ETF Added Uber 12 Months Before the S&P 500

TRFM hasn't been short of accolades, not only just year-to- date, but over the life cycle of uh of the product's inception.

So, TRFM's been around for close to three years now, and it's not only outperforming the NASDAQ 100 year to date, it's actually been outperforming the S&P 500 since its inception.

Um, and it's actually in the top quartile amongst its immediate peer group over the past three years.

So, we're we're really happy with uh with TRFM's performance.

And you know just to take a step back as to what TRFM is.

This is a rules-based global thematic ETF and it tracks uh the Pence transformers index an index that selects its underlying constituents based on research and development expenditures and sales growth in order to really get exposure to really fast growing companies and those companies that could even potentially be you know acquired down the line by such a larger companies.

So um in terms of its overall performance and what's been driving that um one key thing to keep in mind with the RFM is its ability to call it manage risk in a riskier area of the market.

You know thematic uh thematic strategies overall tend to be you know they tend to lean towards mid to small cap growth uh areas of the style box.

Uh but TRFM is a multi-the solution.

So we're not taking one single theme bet.

Uh it has a constituent count of roughly 200 stocks which are modified equal weighted.

So, um, no stock tends to hold, um, you know, above 2% as far as the overall portfolio upon its quarterly rebalance.

And what we really like about, and this is getting into the exposure now, we really like about TRFM is how that all pans out as far as its final portfolio because u less than 10% of the portfolio were in the magn magnificent 7 cohort of stocks.

So think like your Teslas, Microsofts of the world, they're in the portfolio, but as far as their waiting in the overall portfolio, they tend to be lesser of that uh uh that overall portfolio mix.

Uh so TRFM's value ad recently has actually been found in its international bucket in recent months.

So key themes like global defense, uh China, China internet have been uh some top contributing um areas of the market that have been key to TRFM's recent performance.

But TRFM and what we like about their strategy is that it's uh ability to potentially add um you know lesser known names before they end up before they end up getting added to the overall larger benchmark.

So um I wouldn't call this a lesserk known name but definitely a good example.

We have Uber for example.

So Uber was actually added to TRFM's tracking index 12 months before the S&P 500 added it.

Stock price appreciated close to 100% during that time period.

It's not going to work out all it's not going to happen all the time, but we think that that's a good example of what TRFM could potentially bring to the table as far as portfolio application goes.