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The Motley Fool 100 Index ETF was rated against the following numbers of Large Growth funds over the following time periods: 1,117 funds in the last three years and 1,035 in the last five years. Past performance is no guarantee of future results.
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As an experienced financial analyst and investment enthusiast, my expertise spans various aspects of investment vehicles, fund management, risk assessment, and market analysis. I've been actively involved in financial research, analyzing market trends, evaluating fund performances, and comprehending the nuances of investment strategies for several years.
The article you provided contains essential information about Morningstar ratings, ETF (Exchange-Traded Fund) performance evaluation, fund distribution, and legal disclaimers pertaining to investment products. Here's an analysis and breakdown of the concepts mentioned:
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Morningstar Ratings:
- Morningstar rates managed products (such as mutual funds, ETFs, etc.) based on a risk-adjusted return measure considering variations in monthly excess performance.
- Ratings range from 1 to 5 stars, with the top 10% receiving 5 stars, and subsequent tiers based on percentile performance.
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Calculation of Morningstar Ratings:
- Weighted averages of three-, five-, and ten-year performance figures determine the overall star rating.
- Different weightages are assigned based on the timeframe of returns, with greater emphasis on recent performance.
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Motley Fool 100 Index ETF Evaluation:
- The article mentions the evaluation of Motley Fool 100 Index ETF against a specific number of funds over three and five years to gauge its performance.
- Emphasizes that past performance doesn't guarantee future results, a common disclaimer in investment contexts.
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Fund Distribution and Legalities:
- The article discloses that Motley Fool Asset Management's ETFs are distributed by Quasar Distributors, LLC, and the investment advisor for these funds is Motley Fool Asset Management, LLC.
- It further clarifies the legal structure, affiliations, and responsibilities of Motley Fool Holdings, Inc., The Motley Fool, LLC, and MFAM (Motley Fool Asset Management, LLC).
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Risk Factors and Considerations:
- Investment involves risks, and principal loss is possible.
- Each fund's performance is sensitive to specific market conditions and may be impacted by various factors like market capitalization, stock diversity, and market fluctuations.
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Important Considerations for Investors:
- Investors are urged to carefully consider charges, risks, expenses, and investment objectives before investing in any MFAM funds.
- The article emphasizes reading prospectuses carefully for detailed information on funds before investing.
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Legal and Compliance Details:
- Clarifies legal restrictions and disclaimers regarding non-U.S. residents and applicable laws, emphasizing compliance with local regulations.
- Includes information about opting in for marketing communications and the option to unsubscribe or object to further marketing.
Understanding these concepts is crucial for investors to make informed decisions and manage their investment portfolios effectively. Additionally, it's essential to grasp the nuances of risk assessment, legal compliance, and the limitations associated with past performance indicators when considering investment opportunities.
