Achieve True Diversification with the Eagle Capital Select Equity ETF

As cracks begin to show in the dominance of the Magnificent 7 and broader market-cap-weighted indices, investors seeking long-term stability may consider more than passive exposure to the same over-concentrated stocks. At the same time, thematic ETFs often fail to provide real diversification, as they frequently outweigh the biggest names in the S&P 500.

The Eagle Capital Select Equity ETF (EAGL) proposes a different path—one that aims to prioritize durable, value-driven, attractive investments with a long-term focus. Backed by Eagle Capital, a 100% employee-owned investment firm founded in 1988 that manages $32 billion in assets, EAGL follows a disciplined, research-driven strategy designed with the goal to outperform through economic cycles while managing to mitigate concentration risk.

EAGL Provides a Potentially Smarter Approach to Diversification

In volatile markets, diversification isn’t about holding more stocks—it’s about holding the right mix of investments. Many so-called diversified funds ultimately end up mirroring each other, with overlapping top holdings that provide little real risk mitigation.

EAGL seeks to break this pattern. Its actively managed strategy carefully selects 20 to 35 companies based on perceived fundamental strength, long-term growth potential and valuation—not because they dominate an index but because they potentially offer real long-term investment merit.

Designed to complement traditional index funds, EAGL’s goal is to provide a distinct source of alpha, helping investors navigate uncertainty while reducing overexposure to the most crowded trades in the market.

The Right Mix of Market Leaders and Value Stocks 

EAGL takes a selective approach to artificial intelligence (AI), investing in leading companies where fundamentals seem to justify long-term potential—not just short-term hype. As a result, the strategy has trimmed some of its AI exposure over the past year while allocating capital to opportunities in managed care, energy, and communication services.

This disciplined selection process results in EAGL holding a balanced mix of market leaders and value stocks, including:

• Amazon.com Inc. (AMZN) (7.68% as of 3/18/25) and Meta Platforms Inc. (META) (4.05% as of 3/18/25) alongside Humana Inc. (HUM) (2.62% as of 3/18/25) and ConocoPhillips (COP) (5.94% as of 3/18/25)

• Microsoft Corp. (MSFT) (4.76% as of 3/18/25) as well as Charter Communications Inc. (CHTR) and Comcast Corp. (CMCSA) (combined 6.91% as of 3/18/25)

• Currently no exposure to Apple Inc. (AAPL), Nvidia Corp. (NVDA) or Tesla Inc. (TSLA)—which together make up close to 15% of the S&P 500 Index as of March 18^th.

All holdings as of 3/18/2025. Holdings are subject to change.

By avoiding the index's most crowded trades, EAGL provides real differentiation from passive funds, potentially allowing investors to capture opportunities beyond the usual suspects.

The Bottom Line on EAGL

While index ETFs can serve as core holdings, what investors choose to add around that core is crucial. In an environment where passive strategies and thematic buzzwords seem to carry greater risk, EAGL potentially offers a distinct way to enhance portfolio resilience.

Rather than following market-cap weightings, EAGL invests with conviction, ensuring each holding is selected for its fundamental strength, not index inclusion. This active, high-conviction approach adds real diversification—helping investors potentially mitigate risk, navigate uncertainty and unlock long-term value.

For those looking to move beyond passive exposure and invest with intention, EAGL delivers a differentiated, high-quality alternative that stands the test of time.

Disclosures

Investing involves risk, and principal loss is possible.  ETFs may trade at a premium or discount to NAV.  Shares of any ETF are bought and sold at Market Price and are not redeemed by the fund. 

Diversification cannot assure a profit or protect against loss in a down market.

Before investing, please carefully consider the Fund’s investment objectives, risks, charges, and expenses. The prospectus contains this and other important information about the Fund and a free hard-copy of the prospectus can be obtained by calling 833-782-2211. Please read carefully before investing.

The S&P 500 Index includes 500 leading companies and captures more than three-quarters of the total market capitalization. It is float-adjusted and based on the market cap weightings of the securities that comprise the index. In contrast, the EAGL ETF is highly concentrated and may contain companies not listed in the S&P 500 Index.

The Magnificent 7, a term coined in 2023, is used to describe the seven largest mega-cap technology stocks in the S&P 500 Index at that time; as of 12/31/2024, those companies were: Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla

EAGL is distributed by Foreside Fund Services LLC