The CLUB ETF is an actively managed equity ETF that considers companies linked to founders, controlling shareholders, or key operators who have built billionaire-level wealth, and assesses their potential for long-term value creation. Rather than replicating a single index, it relies on selection based on its management criteria.

It uses the record of enterprise value accumulation by founders and key stakeholders as a supplementary criterion for investment decisions, which makes it suitable for long-term investors who can tolerate the volatility of thematic global equity exposure.

It is an ETF with an active management approach, run by Exchange Traded Concepts.

The product selects investment candidates by combining the long-term wealth accumulation records of founders, controlling shareholders, and key operators with the sustainable value creation characteristics of the companies. Because the quality of the quantitative model and external data can affect stock selection, its decision criteria and the nature of its portfolio changes differ from those of broad index-tracking products.

• A selection approach centered on founders and key stakeholders
• An active portfolio construction method that uses a quantitative model

Assets under management (AUM) are $12.1M, and the total expense ratio is 0.75% per year.

Trading volume and bid-ask spreads can vary with market conditions and product circumstances, so it is worth checking liquidity and the price gap versus net asset value before trading.

Performance can be sensitive to global equity market trends, as well as to the earnings of individual companies within the theme, news about management and governance, and shifts in growth expectations. Because it does not always move in step with broad indexes, it is more appropriate to examine how the selection criteria are reflected in the actual holdings and risks than to focus on short-term fluctuations.

Fund flows can be affected by demand for thematic active ETFs, investors' understanding of the management approach, and market risk appetite. Because the product's structure and holding criteria differ from those of general index products, investors interpreting inflows and outflows should keep in mind that overall market sentiment and individual company news may both be at work.

The product is distinctive in using the value creation records of founders and key stakeholders as an investment criterion, but investors should be aware of thematic concentration and the limits of the quantitative selection model.

Because information on comparable listed funds is limited, we do not present any specific ticker as a direct comparison. The key difference from products that track broad market indexes is that this product uses founders and key stakeholders as its selection criterion. When reviewing alternatives, it is advisable to check whether the fund is actively managed, how transparent its holding criteria are, its liquidity, its fee level, and its distribution policy on the same basis.

Before investing, first confirm whether the selection method centered on founders and key stakeholders fits your investment objectives. Also, unlike general index ETFs, management judgment may be reflected in the portfolio, so you should review the investment objective, risk factors, and holding criteria in the prospectus.

A thematic selection method can increase dependence on specific corporate traits, and errors in quantitative data or external information can affect holding decisions. Market swings from global equity exposure, currency fluctuations, and geopolitical variables can also affect returns and market prices, so risk factors should be reviewed together rather than judging the product on short-term performance alone.

The Billionaires Club ETF is an active product that seeks to reflect the long-term value creation background of founders and key stakeholders in its investment selection. Before making a simple performance comparison with general index ETFs, it is advisable to examine its holding criteria, the limits of its quantitative model, liquidity, its lack of distribution history, and global equity volatility, and then decide whether it suits your investment objectives.