ETF Prime: Motley Fool Launches Factor ETFs

Core Insights - Motley Fool Asset Management has launched three new factor ETFs, bringing its total to nine ETFs with over $2.5 billion in assets [1] - The new ETFs, namely the Motley Fool Innovative Growth ETF (MFIG), Motley Fool Value Factor ETF (MFVL), and Motley Fool Momentum Factor ETF (MFMO), utilize proprietary data from over 30 years of investment research [1] - The flagship fund, Motley Fool 100 Index ETF (TMFC), has outperformed the S&P 500 by approximately 230 basis points annually since its launch in 2018, enhancing the firm's credibility in expanding its offerings [1] ETF Launch and Strategy - Despite 90% of new ETFs launched in 2025 being active, Motley Fool opted for systematic index-based strategies for its new funds [1] - The firm emphasizes high-quality companies for long-term holding, redefining traditional value investing to focus on specific return and volatility profiles rather than just statistical definitions [1] Market Trends and Insights - Investors are increasingly looking to reduce exposure to top-heavy names, particularly the Magnificent Seven, as large-cap valuations reach peak levels [1] - Small-cap stocks have shown strong momentum, with the Russell 2000 index gaining 22% over the past six months compared to a 10% increase in the S&P 500 [1] - Acuitas Investments has launched the Acuitas Small Cap Active ETF (AIMS), targeting retail investors with a multi-manager fund that leverages 15 years of institutional expertise in small- and micro-cap investing [1]