- What does ESN invest in?
- ESN aims to reflect an index composed of key blue-chip companies in the US. The fund primarily holds all 40 securities comprising the index, but with the flexibility to adjust holdings under specific conditions. Security selection is conducted by a committee that evaluates companies using a qualitative approach, focusing on their significance and stability across sectors such as technology, consumer goods, energy, and healthcare. The committee ensures diversified representation by selecting firms that are essential to the countrys economy. Each firm is equally weighted during annual rebalancing, ensuring consistent exposure across components. However, the fund may modify weightings throughout the year, allowing underweighting or overweighting to better align with the index. Additionally, ESN may use up to 20 percent of the fund assets to employ S&P 500 futures and options strategies. ESN converted from a mutual fund to an ETF with $70 million in assets.
- What is the expense ratio of ESN?
- Essential 40 Stock ETF (ESN) charges an expense ratio of 0.70%. This is the annual fee deducted from fund assets to cover management and operations.
- How big is ESN?
- Essential 40 Stock ETF (ESN) manages $180.7M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.
- Is ESN actively managed or an index fund?
- ESN is a passive index fund — it tracks a published benchmark by holding the constituents in their published weights. Index funds typically charge low expense ratios (ESN's is 0.70%) because there's no security selection cost.
- When was ESN launched?
- Essential 40 Stock ETF (ESN) launched in October 2024 and is managed by KKM Financial.
- How has ESN performed?
- ESN's total return — price change plus reinvested distributions — is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.
