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Under typical market conditions, the Akre Focus ETF primarily channels its capital into equity securities issued by companies whose shares are traded on U.S. stock exchanges. The core of its investments largely comprises common stocks from businesses spanning the entire spectrum of market capitalizations, irrespective of their size. It's important to note that this fund maintains a non-diversified investment approach.
Is AKRE's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
I maintain the Hold rating on the Akre Focus ETF. AKRE has surprised on the upside since my May article, outperforming the S&P 500 against a rather challenging backdrop, chiefly thanks to its application software picks. AKRE's portfolio of 17 stocks has demonstrated slight improvements in terms of growth, GARP, and quality characteristics, which is encouraging but insufficient for a rating upgrade.
New AdvizorPro data shows RIAs broadened their ETF lineups in Q1 2026, leaning into real assets, active managers, and defense strategies.
I initiate coverage of the Akre Focus ETF with a Hold rating. Since conversion into an ETF in October 2025, the ultra-concentrated AKRE has severely underperformed IVV and RSP amid the software rout. Its AUM has declined by about 41%. However, performance of its predecessor fund, which had the same investment philosophy, was quite robust, as illustrated by 10 full calendar years of outperformance vs. the S&P 500 since 2009.
The Akre Focus ETF's first quarter 2026 performance was -19.40% compared with the S&P 500 Total Return of -4.33%, primarily driven by severe valuation multiple contraction. The gap between growth expectations and the Akre Focus ETF's valuation reached its widest point since September 2016, making valuation a potential tailwind for returns. Akre Capital sees large-language models and AI-based coding tools as important sources of value enhancement for high-quality incumbent software and information services businesses at a manageable cost.
Acquired 289,630 shares in AKRE with an estimated trade value of $18.97 million. Quarter-end position value increased by $18.97 million, reflecting both the new stake and price movement.