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]

Dimensional International Core Equity 2 ETF (DFIC US) – Investment PropositionDimensional International Core Equity 2 ETF (DFIC) provides broad, systematically managed exposure to developed markets outside the U.S., seeking to capture the global equity premium while emphasizing smaller companies, lower relative prices, and higher profitability. The strategy pursues long-term capital appreciation by spreading risk across countries and sectors, using flexible trading and disciplined rebalancing to maintain ta ...

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report highlights a shift in market dynamics, indicating that risky stocks have traded at a premium to safe stocks for over two decades until recently, and that higher volatility is expected to persist according to the yield curve [8][16] - It suggests that cyclicals are becoming the new defensives, with sectors like Financials, Tech, and Energy showing more earnings stability than the S&P 500 [8][16] - The report emphasizes the importance of macro timing over stock selection, noting that fundamentals can be overshadowed by sentiment and positioning, especially at inflection points [5][8] Summary by Sections Section I: Core Concepts and Methodology - The report discusses the evolution of quantitative strategies, noting that clients now use three times the number of factors compared to 25 years ago, indicating a significant shift towards data-driven investment approaches [19][20] - It also mentions the rise of short-termism, with zero-day-to-expiry options accounting for 50-60% of total SPX option volume, reflecting a growing focus on short-term trading strategies [27][28] Section II: Stock Strategies within the S&P 500 - The report outlines various stock strategies, emphasizing that different factors may be more rewarded in specific sectors, which can enhance the stock screening process [17][18] - It highlights the performance of stock screen techniques across valuation, growth, quality, and risk factors, noting that some factors have long-term efficacy while others depend on macro cycles [17][18] Section III: Stock Strategies within Industries - The report provides a sector-specific overview, indicating that certain sectors like Communication Services and Consumer Discretionary have distinct performance characteristics that can be leveraged for investment strategies [12][13] Section IV: Stock Strategies for Growth and Value Managers - The report discusses the importance of distinguishing between growth and value strategies, noting that the performance of these strategies can vary significantly based on market conditions [14][15] Section V: BofA Quality Strategies - The report emphasizes that quality stocks are finally garnering a premium, with a focus on what drives quality and how it can be measured within different sectors [14][15] Section VI: Relative Valuation for Industries - The report includes a relative valuation analysis for various industries, providing insights into how different sectors are valued compared to one another [14][15] Section VII: Relative Valuation between Growth and Value Benchmarks - The report discusses fundamental valuation characteristics, highlighting the differences between growth and value benchmarks and their implications for investment strategies [14][15] Section VIII: ADR Strategies - The report outlines strategies for American Depositary Receipts (ADRs), indicating how these can be integrated into broader investment strategies [14][15]