The REX WMT Growth & Income ETF (WMTI) seeks to provide both capital appreciation and income by investing in companies that demonstrate strong growth characteristics while maintaining dividend-paying capabilities. This growth-focused strategy targets firms with expanding revenues, earnings growth potential, and sustainable dividend policies across various market capitalizations.
How It Works
WMTI employs an actively managed approach that screens for companies meeting specific growth criteria including revenue acceleration, earnings per share growth, and expanding profit margins. The fund combines growth metrics with dividend sustainability analysis, selecting companies that can maintain or increase payouts while reinvesting in business expansion. Portfolio construction balances growth potential with income generation, with quarterly rebalancing to capture emerging growth opportunities and maintain optimal risk-adjusted returns.
Key Features
- Dual mandate combining growth investing with dividend income, targeting companies that can deliver both capital appreciation and regular payouts
- Active management allows for tactical positioning and opportunistic stock selection based on evolving growth trends and market conditions
- Recently launched ETF with 0.00% expense ratio, though this promotional rate may increase as the fund establishes operational history
Risks
- This ETF can lose value if growth companies experience earnings disappointments or multiple compression, potentially declining 20-30% during growth stock selloffs like 2022
- Active management risk means the fund may underperform passive alternatives if stock selection proves poor or market timing is unfavorable
- New fund with minimal assets faces potential closure risk and limited liquidity, making it unsuitable for large position sizes initially
Who Should Own This
Best suited for growth-oriented investors with 3-7 year time horizons seeking both capital appreciation and modest income generation. Requires medium-to-high risk tolerance due to growth stock volatility and active management uncertainty. Appropriate as a satellite holding (5-15% allocation) for investors wanting exposure to dividend-paying growth companies within a diversified portfolio.