THIS Active ETF is Beating the S&P 500 and Change Passive Investing FOREVER

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The Fundstrat Granny Shots US Large Cap ETF (GRNY) is an actively managed ETF with an investment objective focused on long-term capital appreciation. The fund's strategy involves a counterintuitive, systematic method that aims to outperform conventional approaches by adapting to market conditions. It employs a multi-theme approach, requiring at least two identified investment themes to intersect for a stock to be considered. The quantitative screening process filters companies based on high profit margins, consistent EPS growth, healthy cash flow, and reasonable valuations. It also incorporates forward-looking signals and technical patterns. The fund's portfolio construction emphasizes balance and less top-heaviness compared to other ETFs, with individual position caps typically at 3% or less. The strategy's core philosophy is to pay attention to both short-term cycles and long-term trends, analyzing economic conditions, labor markets, consumer spending, and demographic shifts. The fund's adaptive framework dynamically positions itself based on inflation and interest rate environments, and investor risk appetite, creating four distinct scenarios for optimal exposure. A key performance metric is the net return after its 0.75% expense ratio, which has historically shown outperformance against benchmarks like QQQ after fees. However, the fund's durability and justification are still under scrutiny, given its relatively short track record of less than two years in ETF form. The focus is on a repeatable, structured process rather than manager intuition or cherry-picked data, with the ultimate test being its performance across full market cycles, including periods when the system may be wrong.

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