This Transformative ETF Just Got 5-Stars on Morningstar

And we we focus mainly here at AAM on income generating generating solutions, but we know how important it is to have growth strategies as well and and the role they play in a uh diverse uh asset allocation model.

And we're awfully excited to talk about Transformers and the fact that as you alluded to just a few days ago, it was after, you know, three years of a a track record a live performance has been awarded a five-star rating by Morning Star.

And the performance has been exceptional.

I would say um through 1031 TRFM is up nearly 34% year-to date.

Um and more impressively it's uh returned over 31% on an annualized basis over the last 3 years.

Now you may be saying okay well you know most likely you are uh capturing that alpha uh through mag 7 exposure right many large cap growth strategies have 40 to 50 or even 60% allocation to the mag 7 exposure and I will say that is not the case with transformers one of the major talking points around TRFM is the fact that it does not have that much uh mag 7 exposure.

In fact, it's right around 6%.

There are over 200 holdings in transformers and that's what makes the the performance quite honestly astounding is that we are able to return that without having uh a tremendous amount of mag seven exposure.

So the question becomes is how does that how does TRFM achieve that?

I will start off by saying TRFM is a rulesbased strategy.

Its underlying index is the Pence transformers index.

And again, this is an index that really focuses on R&D.

It focuses on capex and sales growth.

And in doing so, the goal of TRFM is to identify those big or brilliant companies that are transforming the world around us.

And we say big or brilliant because if you're big, you are generally spending a lot of money on R&D and coming up with something exceptional.

If you're brilliant, you have a very good concept or a product and then you get bigger and bigger and bigger.

And what we are trying to do through our rules-based index is trying to capture those arenas.

And luckily, we we've been able to do that.

The performance has been fantastic.

And lastly, I will say this transformers is not a domesticonly strategy.

If you invested in S&P 500 or Q's, you are essentially omitting a large arena international equities that provide a lot of growth opportunity. 30.