At the core of Exponential ETFs’ investment thesis is the intuitive idea that companies whose customers are satisfied will outperform their peers over the long term. In an age of increasing sophistication and data availability, it is easy to become distracted from what matters most when evaluating stocks – that behind every stock is a tangible product or service.
Financial statements can provide detail into how the company has operated in the recent past. Stock performance can tell us about the past trading patterns and recent direction of the company stock. Analysts can use all publicly available information to formulate their opinions about the prospects of a company. But the customers themselves – those who spend their own money and are most familiar with the good and services they are receiving – provide direct insight into the value of those goods and services which are at the core of any stock.
The idea that customer satisfaction is a driver of stock prices is substantiated through decades of academic studies and economic research.
The American Customer Satisfaction Index (ACSI) was established in 1994 by researchers at University of Michigan’s Ross School of Business as a national indicator of the quality of economic output, as measured by US household consumption experience. Today, the ACSI tracks trends in customer satisfaction and provides benchmarking insights for companies, industry trade associations and government agencies. ACSI’s data utilizes the groundbreaking proprietary econometric models developed by Dr. Claes Fornell, the world’s leading authority on customer satisfaction, its measurement and analysis.The American Customer Satisfaction ETF (Ticker: ACSI) provides large cap US equity exposure to investors with individual companies weighted within each sector by their ACSI customer satisfaction scores. By tracking the American Customer Satisfaction Investable Index, the ETF can provide Exponential ETFs’ thesis as a core holding for US stock market investors, and it can do so in a transparent and systematic process. Utilizing ACSI’s customer satisfaction data, the American Customer Satisfaction ETF delivers a fund that sheds light on customer satisfaction as an optimizing portfolio factor, and provides overweight exposure to the most loved products and services that are at the root of the US stock market.
American Customer Satisfaction ETF (the “Fund”) seeks to track the performance, before fees and expenses, of the American Customer Satisfaction Investable Index (the “Index”).
The American Customer Satisfaction Investable Index utilizes proprietary customer satisfaction scores to weight stocks within each sector by their relative customer satisfaction scores. The index utilizes customer satisfaction metrics for over 350 brands, representing over 150 large capitalization securities for inclusion in the index. Sector constraints are applied at the time of index rebalance with the intention of providing a diversified portfolio across all US sectors. All securities within the index are listed on a major US stock exchange and measured by the American Customer Satisfaction Index.
|Distributor||Foreside Fund Services, LLC|
|Lead Market Maker||Wolverine Trading|
|Primary Exchange||Cboe BZX|
|Net Expense Ratio||0.66%|
|Index||American Customer Satisfaction Investable Index|
as of 12/31/2019
|Fund||1 month||3 month||6 month||YTD|
|S&P 500 Index||3.02%||9.07%||10.92%||31.49%|
|Fund||1 year||3 year||Inception*||Gross Expense Ratio|
|S&P 500 Index||31.49%||15.27%||16.45%||-|
The performance data quoted above represents past performance. Past performance is not a guarantee of future results. Investment return and value of the ETF shares will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance, current to the most recent month-end, call 734-882-2401. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Total Returns are calculated using the daily 4:00pm net asset value (NAV). Market returns are based on the composite closing price and do not represent the returns you would receive if you traded the shares at other times. The first trading date is typically several days after the fund inception date. Therefore, NAV is used to calculate market returns prior to the first trade date.
as of 04/01/2020
|AMZN||AMAZON COM INC||1,155.00||$2,203,393.50|
|SCHW||SCHWAB CHARLES CORP||38,944.00||$1,283,594.24|
|PG||PROCTER & GAMBLE CO||11,202.00||$1,224,714.66|
|VG||VONAGE HLDGS CORP||173,250.00||$1,167,705.00|
|COST||COSTCO WHSL CORP NEW||3,729.00||$1,069,402.62|
|UPS||UNITED PARCEL SERVICE INC||10,808.00||$976,935.12|
Fund holdings and sector allocations are subject to change and are not recommendations to buy or sell any security.