Strategic Trust Running Oak Efficient Growth ETF (RUNN) seeks to provide capital appreciation by investing in U.S. companies demonstrating efficient growth characteristics. The fund targets companies that combine strong revenue and earnings growth with efficient capital allocation and operational metrics, focusing on sustainable growth rather than speculative high-growth stocks.
How It Works
RUNN employs an actively managed approach using proprietary screening criteria to identify companies with efficient growth profiles, including strong return on invested capital, consistent earnings growth, and reasonable valuations relative to growth rates. The fund typically holds 30-60 concentrated positions across market capitalizations, with quarterly rebalancing based on fundamental analysis. Portfolio construction emphasizes quality growth companies that can sustain expansion without excessive capital requirements or leverage.
Key Features
- Zero expense ratio structure makes it one of the most cost-effective actively managed growth ETFs available
- Launched in 2023 with focus on 'efficient growth' methodology combining growth and quality factor screening
- Concentrated portfolio approach allows for higher conviction positions in best growth opportunities versus broad diversification
Risks
- This ETF can lose value if growth stocks fall out of favor, potentially declining 40-50% during growth stock corrections like 2022
- Concentrated portfolio of 30-60 holdings creates higher single-stock risk compared to diversified growth ETFs with hundreds of positions
- New fund with limited track record means investment process remains unproven through full market cycles and economic downturns
Who Should Own This
Best suited for aggressive growth investors with 3-7 year time horizons and high risk tolerance seeking concentrated exposure to quality growth companies. Appropriate as satellite holding representing 10-25% of equity allocation. Works well for investors wanting active management without traditional mutual fund fees in tax-advantaged accounts.