PRESENTATION
*FOR INSTITUTIONAL USE ONLY
PORTFOLIO MANAGER
Joel Shulman Ph.D., CFA
Dr. Joel Shulman is the founder and chief investment officer of EntrepreneurShares. His 30+ years of academic research led to the formation of our proprietary 15-factor investment model. Dr. Shulman is a leading academic in the field of Entrepreneurship at Babson College (ranked #1 for Entrepreneurship 18 consecutive years by U.S. News & World Report.) Dr. Shulman holds a Ph.D. in Finance and is a CFA charter holder with a Certified Management Accountant and Certified Cash Manager designation. He also earned an MPA from the JFK School of Government at Harvard University. He founded and sold The Shulman Review, a CFA test-prep company that trained over 12,000+ investment professionals in 110+ countries around the world. In addition, he provided consulting services to the World Bank and helped facilitate capital market development in Central Asian states. Dr. Shulman consulted for many small entrepreneurial firms and large corporations as well. He is the author and coauthor of numerous academic articles and books. Dr. Shulman is the author of 2004 best business book Getting Bigger by Growing Smaller and contributes regularly to a Forbes column on investing. Founder & CIO
ENTREPRENEURSHARES | 175 Federal St. Suite 875, Boston MA 02110 | 617 279 0045 | www.ershares.com
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Entrepreneur ESG
Entrepreneurial Companies exhibit an approach which tends to have favorable impact from an Environmental, Social and Governance perspective. This unique approach is characterized as the Entrepreneur ESG. - eESG -
Environmental
Governance
Social
Over 65% of Entrepreneurial companies operate in sectors with low environmental impact such as Information Technology, Healthcare and Financials.
Founder-CEO success is derived from their superior commitment and long-term vision. Prior to Founder- CEO departure, company out performance is appreciably higher.
Entrepreneurial companies generate above market job growth over an extended period of time.
Source: Leadership Matter: Crafting a Smart Beta Portfolio with a Founder-CEO Twist by Joel M. Shulman.
Source: ERShares Entrepreneur 30 ETF Q1 2018 Factsheets
Source: ER30 Index Fund Fact Video from NYSE ETF Launch.
ENTREPRENEURSHARES | 175 Federal St. Suite 875, Boston MA 02110 | 617 279 0045 | www.ershares.com
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ENTREPRENEURSHARES | 175 Federal St. Suite 875, Boston MA 02110 | 617 279 0045 | www.ershares.com
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ENTREPRENEURIAL COMPANIES DISPLAY 15 KEY ATTRIBUTES IN 4 CATEGORIES
ENTREPRENEURSHARES | 175 Federal St. Suite 875, Boston MA 02110 | 617 279 0045 | www.ershares.com
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ENTREPRENEURIAL MODEL
ENTREPRENEURSHARES | 175 Federal St. Suite 875, Boston MA 02110 | 617 279 0045 | www.ershares.com
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FACTOR ANALYSIS
ENTREPRENEURSHARES | 175 Federal St. Suite 875, Boston MA 02110 | 617 279 0045 | www.ershares.com
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FACTOR ANALYSIS DISCLOSURE
Index performance does not represent actual fund or portfolio performance and such performance does not reflect the actual investment experience of any investor. An investor cannot invest directly in an index. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in a portfolio invested in accordance with an index. The ER30 Index performance is based on pre-inception index performance. The index was created based on objective, pre-defined rules. The pre-inception index begins on 06/30/2005 and goes until 11/07/2017. Beginning on 11/07/2017 the Index began being tracked by the ERShares Entrepreneur 30 ETF based on the Index’s live performance.
The pre-inception Index performance period is based on criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected its performance, and cannot account for all financial risk that may be affected the actual performance of the ER30 Index.
The Entrepreneur factor is a new influence that is contributing to the outperformance of publicly traded entrepreneurial companies. In a Bloomberg factor analysis, it is evident how a portfolio of entrepreneurial companies contains an entrepreneur factor which is more significant than all the other traditional factors such as growth or momentum.
The index rules can be found under the Principal Investment Strategies section of the ERShares Entrepreneur 30 ETF Prospectus. The prospectus can be obtained by calling 1-833-368-7383 or visiting our website www.ershares.com. The companies are reviewed on a quarterly basis in order to ensure their adherence to the ER 30 Index rules.
The ERShares Entrepreneur 30 ETF investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 1-833-3687-383 or by visiting our website www.ershares.com .Read it carefully before investing. Distributed by Foreside Fund Services, LLC
The ERShares Entrepreneur 30 ETF risks can include and are not limited to: Absence of Prior Active Market Risk, Index Risk, Index Tracking Risk, Indexing and Passive Investment Risk, New ETF Provider, Common Stock Risk, Market Risk, Concentration Risk, American Depositary Receipts, Early Closing Risk, Exchange Trade Fund Risk.
Alpha compares the risk-adjusted performance of a portfolio to a benchmark index. A positive alpha means the portfolio has outperformed the index on a risk-adjusted basis. Beta is a measure of the volatility of a portfolio in comparison to a benchmark index. Less than one means the portfolio is less volatile than the index, while greater than one indicates more volatility than the index. Standard deviation measures historical volatility. Higher Standard Deviation implies greater volatility. Sharpe Ratio measures risk-adjusted performance by dividing the portfolio’s excess returns (returns above a "risk-free" rate such as a Treasury bill) by the standard deviation of those returns. The higher the ratio, the better the portfolio’s return per unit of risk. The Up Capture ratio is the statistical measure of an investment manager’s performance in up-markets. The Down Capture ratio is the statistical measure of an investment manager’s performance in down-markets. Information Ratio is a ratio of portfolio returns above the returns of a benchmark compared to the volatility of those returns. The P/E (or Price/Earnings) ratio is the ratio of a company’s share price to its earnings per share. Earnings before interest, tax, depreciation and amortization (EBITDA) is a measure of a company's operating performance.
ENTREPRENEURSHARES | 175 Federal St. Suite 875, Boston MA 02110 | 617 279 0045 | www.ershares.com
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