Your portfolio might not be as diversified as you think.

Introducing a straightforward equation for high-quality AND diversification. All in one cost-effective ETF.

View in browser   Dear Fellow Investor,   Our Portfolio Managers believe some of the most popular index funds on the market could be holding you back from greater potential in your portfolio. When you invest in a generic market-cap weighted fund like the S&P 500, you're far more invested in the top megastocks, known as the "Magnificent 7", than you are in the remaining 493. If one of the giants falls, that portion of the fund falls with it.  That's not how we think "diversification" should work. And, if you're invested in several market-cap weighted funds, you might be holding even MORE excess shares in just a few companies than you realize. Not to mention, hundreds of the remaining companies could be weighing you down when you could opt for vetted quality instead. An alternate we stand behind? Factor exposure.  Which is just a fancy name for a type of diversification we think can really make a difference in your portfolio.   Let us explain...   If the S&P 500 is a heavy bulldozer, we see TMFE like a pair of trusty jumper cables. You wouldn't want your mechanic to take a bulldozer to your car when all you needed was to jumpstart the battery, right?  Factor ETFs add companies to their funds based on specific qualifications (not just size and sector) that could potentially lead to greater returns. And to us, a smart beta formula is a tool to zero in which stocks meet those qualifications. We like to think of smart beta as a quality filter. TMFE's smart beta formula, created by The Motley Fool, LLC Investing Intelligence Team, pinpoints 100 companies that meet their strict criteria for three critical outperformance factors: profitability, growth, and stability.  These meaningful criteria, we believe, could set you up for substantial potential gains in your long-term portfolio. Discover TMFE ANALYST RECOMMENDED. FACTOR-DRIVEN. Before a company even meets TMFE's smart beta formula… It first begins by analysts from The Motley Fool, LLC giving their active recommendation to their newsletter subscribers. They dedicate significant hours researching and recommending what they believe to be some of the highest-quality companies in the marketplace today. Which means each and every holding in TMFE is reviewed and hand-selected by a real person, adding an additional quality checkpoint. Often with a generic market-cap fund, on the other hand, the only significant qualifier is a company's size. You just have to hope that the top-weighted stocks that fit the size criteria perform well.  Our optimism for TMFE however is based on The Motley Fool, LLC analysts' recommendations, and tangible, sustained track records of growth and profitability. You know that's not all… TMFE also adds an additional diversification layer on top to make sure that you aren't putting all your eggs in one basket. Each security is capped at 5% with the goal of giving you even more diversification. This should give you greater exposure to a wider array of sectors with less risk in any single holding. Discover the Foolish difference! Follow this link or click the button below to find out what TMFE's quality-seeking, smart beta approach could potentially do for your investment portfolio. Discover TMFE Motley Fool Asset Management's ETFs are each a series of The RBB Fund, Inc. and are distributed by Quasar Distributors, LLC.   The investment advisor for each fund is Motley Fool Asset Management, LLC ("MFAM"). MFAM is a wholly owned subsidiary of Motley Fool Investment Management, LLC, whose parent company, The Motley Fool Holdings, Inc., which is a multimedia financial-services holding company. MFAM, an affiliate of The Motley Fool, LLC ("TMF"), is a separate legal entity. No TMF analyst is involved in the investment decision-making or daily operations of MFAM. With respect to its actively-managed funds, MFAM does not attempt to track any TMF services and, as such, those funds may diverge completely from TMF's services.   The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it. All material in this message is accurate as of February, 2024, unless otherwise noted.    The Capital Efficiency 100 Index was established by TMF in 2021 and is a proprietary, rules-based index designed to track the performance of the highest scoring stocks of U.S. companies, measured by a company's capital efficiency, that have been recommended by TMF's analysts and newsletters, and that also meet certain liquidity requirements. Capital efficiency is a measure of how a business turns its investments into revenue and profit and it provides insight into the company's return on invested capital. The S&P 500 Index is a stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. You cannot invest directly in an index.   The Motley Fool 100 Index is a market-cap weighted index that measures the performance of The Motley Fool, LLC's largest active buy recommendations or highest-ranked stocks in Fool IQ, the company's analysts opinion database.  Every company included in the Index is incorporated and listed in the U.S. The S&P 500 Index is a stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. You cannot invest directly in an index.   Investing involves risk. Principal loss is possible. This Fund invests primarily in particular market capitalizations, including small cap stocks, thus its performance will be especially sensitive to market conditions that particularly affect smaller capitalization companies. The Fund is non-diversified, which means its NAV, market price and total returns may fluctuate or fall more than a diversified fund. Gains or losses on a single stock may have a greater impact on the Fund. For these and other reasons, there is no guarantee the Fund will achieve its stated objective.   Please consider the charges, risks, expenses, and investment objectives carefully before you invest. Please see the prospectuses for the Motley Fool Global Opportunities ETF, the Motley Fool Mid Cap Growth ETF, the Motley Fool 100 Index ETF, the Motley Fool Small Cap Growth ETF, the Motley Fool Next Index ETF and the Motley Fool Capital Efficiency 100 Index ETF containing this and other information. Read it carefully before you invest or send money.   NON-U.S. RESIDENTS AND APPLICABLE LAW. The Site is hosted in the United States of America. MFAM and their representatives may transact business only in states where they are registered, excluded, or exempted from state registration requirements. MFAM makes no representations or warranties that the pages or other materials on the Site are appropriate for use outside the United States. If you choose to access the Site from a location outside the United States, you do so at your own risk and are responsible for complying with all applicable local laws. No investment product or service referred to on this site is intended to be made available in any country or other jurisdiction where such availability (or offer or sale of such product or service) would violate applicable laws or regulations. 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