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FCTE aims to beat the S&P 500 throughout complete market cycles by targeting companies believed to be the most promising. Typically, holdings comprise around 20 domestic large-cap stocks drawn from the S&P 500 index. Portfolio selection is based on the Full-Cycle Trend (FCT) strategy, which evaluates stocks based on quality metrics and trend factors like return on capital and cash flow stability, earnings growth, return on investment, momentum, linear regression, and trend analysis. Each month, a model portfolio is created and published. The adviser uses this portfolio to update the funds…
Is FCTE'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.
SMI 3Fourteen Full-Cycle Trend ETF (NASDAQ: FCTE - Get Free Report) was the target of a significant increase in short interest during the month of April. As of April 15th, there was short interest totaling 3,134 shares, an increase of 5,496.4% from the March 31st total of 56 shares. Based on an average daily volume of
SMI 3Fourteen Full-Cycle Trend ETF takes a proprietary "Full Cycle Trend" approach to select 20 U.S. stocks based on quality, trend, and momentum screens, among others. Its expense ratio is high at 0.85%. My initial coverage from October was reasonably positive, though I maintained a healthy degree of skepticism, as is appropriate for such a new and highly active ETF. I was prepared for high turnover, but what I wasn't expecting was such a dramatic change in portfolio fundamentals. Unfortunately, most of the changes were negative.
FCTE is an actively managed vehicle with a strategy designed "to identify and own stocks that can outperform the S&P 500 across the entire market cycle." It has a portfolio of just 20 stocks. Adjustments are made monthly as "the screens are rerun." FCTE's factor mix is currently heavy in quality, light in value, with adequate growth exposure. Consumer staples, energy, utilities, and real estate are ignored.
I own a small position in the SMI 3Fourteen Full-Cycle Trend ETF. The Fund aims to outperform the S&P 500 over the full investment cycle, using a proprietary "Full-Cycle Trend" strategy which targets high-quality large-cap companies. The Fund does not have a track record, has a relatively high expense ratio, and is dependent on the success of its proprietary investment strategy.
FCTE is an actively managed large-cap blend ETF with a 0.85% expense ratio and $469 million in AUM. Selecting only 20 holdings each month, it's an exciting, high-conviction play. Since September 1996, the strategy has outperformed the S&P 500 by nearly 6% per year. I'll break down those numbers to give investors a better idea of what to expect. This article takes a comprehensive look at FCTE's fundamentals compared to SPY and three other peers. I identified one significant advantage which could lead to long-term alpha.