Why a 2.1% Portfolio Shift Targets a New ETF With 15% Long-Term Returns

Core Viewpoint - Capital Planning LLC has initiated a new position in the Akre Focus ETF, acquiring 114,952 shares valued at $7.45 million, indicating a strategic investment move in a concentrated fund [1][2]. Group 1: Investment Details - The new position in the Akre Focus ETF represents 2.1% of Capital Planning's reportable 13F assets under management [3]. - As of January 23, the price of AKRE shares was $62.64, reflecting an approximate 11% decline from the fund's listing in October [3]. - The Akre Focus ETF has a market capitalization of $9.8 billion [4]. Group 2: ETF Overview - The Akre Focus ETF employs a disciplined, fundamentals-driven strategy to select companies with durable competitive advantages and proven management teams [6]. - The fund maintains a concentrated portfolio, focusing on business quality and growth potential to generate long-term value for investors [6][9]. - The fund has a 0.98% expense ratio and has delivered 15.5% annualized returns over three years on a NAV basis [11]. Group 3: Portfolio Composition - The ETF primarily comprises US equities, including common and preferred stocks, warrants, options, and equity-like instruments such as partnership interests and REITs [9]. - As of late January, the top holdings included Mastercard, Brookfield, Constellation Software, Visa, and Moody's, which together account for about 50% of the portfolio [11]. - The fund's strategy appears to accept more variance in exchange for differentiated outcomes, as it adds a concentrated strategy to its predominantly broad index fund and factor ETF assets [10][12].