The Founders 100 ETF (FFF) offers retail investors exposure to founder-led public companies, a category that historically demonstrates significant outperformance compared to broader market indices like the S&P 500.

Key Points

• The Founders 100 ETF (FFF) selects 100 companies from the 200 largest founder-led firms based on a fundamental valuation model.
• Research indicates that founder-led companies grow 4% faster than the S&P 500 on average, often attributed to long-term vision and grit.
• The fund maintains an 80% active share relative to the Nasdaq 100, providing broader sector exposure across industrials, energy, and financials.
• Portfolio holdings are rebalanced quarterly with a 7.5% maximum position cap to ensure diversification while maintaining conviction.
• The fund enforces a strict sell discipline, liquidating positions within 90 days of a founder’s resignation announcement or if fundamental performance flags.

Why it Matters

This investment strategy provides individual investors with a liquid, accessible vehicle to replicate the performance characteristics typically reserved for private venture capital funds. By focusing on companies where the original founder remains in a leadership role, the fund aims to capture the unique strategic advantages and long-term decision-making inherent in founder-led organizations.