ETF.com: The Motley Fool Jumps Into ETFs

Author Cinthia Murphy interviews Motley Fool Asset Management Chief Investment Officer Bryan Hinmon.

"As an investor, chances are you’ve heard of Motley Fool and read some of its research and analysis on Fool.com. What you might not realize is that Motley Fool does more than writing. The company also has an asset management side..."

For the full article, click here: http://www.etf.com/sections/features-and-news/motley-fool-jumps-etfs



Please note: 

  • The distributor for The Motley Fool Global Opportunities Fund, The Motley Fool Small-Mid Cap Growth Fund, and The Motley Fool Emerging Markets Fund, which are mentioned in the linked article, is Foreside Distributors, LLC, a broker-dealer not affiliated with The Motley Fool. Any mention of these or other products should not be interpreted as an offer to buy those securities.
  • The linked article mentions a 0.50% fee. This refers to the fund's gross expense ratio.
  • The Motley Fool 100 index, which is mentioned in the linked article, is a new market-cap weighted index that measures the performance of The Motley Fool’s 100 largest active buy recommendations or highest-rated stocks in Fool IQ, the company's analyst opinion database. Every company included in the Index is incorporated and listed in the U.S. You cannot invest directly in an index.
  • Investing in small- and mid-cap companies involves additional risks, such as limited liquidity and greater volatility.
  • Foreign investing involves special risks, such as currency fluctuations and political uncertainty.

Disclosures

*Holdings are subject to change. Holdings and percent of assets are based on security assets only, not including cash or receiveables (unpaid interest and dividends).

Please consider the charges, risks, expenses, and investment objectives carefully before you invest. Please see the prospectuses for the Motley Fool 100 Index ETF (the “Fund”) containing this and other information. Read it carefully before you invest or send money.

The investment advisor for the Fund is Motley Fool Asset Management, LLC (“MFAM”). Shares of the Fund are distributed by Quasar Distributors, LLC, a registered broker-dealer not affiliated with The Motley Fool.

The net asset value (“NAV”) of the Fund’s shares is determined as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time) each day the NYSE is open. Share are purchased and sold in secondary market transactions at negotiated market prices rather than at NAV. Shares of the Fund may be bought and sold throughout the day on the exchange through a brokerage account. However, shares are not individually redeemable, and may only be redeemed directly from the Fund by Authorized Participants in very large creation/redemption units. Shares may trade at, above or below NAV. Brokerage commissions will reduce returns.

Investing involves risk, including possible loss of principal. To the extent the Fund invests more heavily in particular sectors of the economy (e.g., technology), its performance will be especially sensitive to developments that significantly affect those sectors. Similarly, the Fund is non-diversified, which means that it may invest a high percentage of its assets in a limited number of securities and, as a result, gains or losses on a single stock may have a greater impact on the Fund.

In addition to normal risks associated with investing in equity securities, investments in the Fund are subject to those risks specific to ETFs. Unlike other funds managed by MFAM, the Fund is not actively managed and we do not attempt to take defensive positions in any market conditions, including adverse markets. Likewise, we would not sell shares due to current or projected underperformance of a security, industry, or sector, unless that security is removed from the Index or the selling of shares of that security is otherwise required upon a reconstitution of the Index. As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons, including the operating expenses and portfolio transaction costs not incurred by the Index. In addition, the Fund may not be fully invested in the securities of the Index at all times, or may hold securities not included in the Index. Finally, Fund shares may trade at a material discount to NAV, and this risk is heightened in times of market volatility or periods of steep market declines.

For these and other reasons, there is no guarantee the Fund will achieve its stated objective.

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