It is an active ETF that concentrates its assets in a small number of promising stocks selected by the management team. Rather than mechanically tracking a broad index, it follows a concentrated strategy that seeks to outperform the market through stock selection.

It aims for excess returns through active stock picking rather than index tracking, and it suits investors who can tolerate the resulting concentration risk and volatility.

It is an ETF managed by Pinnacle using an active (actively managed) approach.

Based on fundamentals and market conditions, the management team selects a small number of promising stocks and concentrates the portfolio in them. Because it does not follow index inclusion rules and adjusts the portfolio at its discretion, stock selection skill determines performance.

• Concentrated portfolio of a small number of stocks
• Active stock selection at the managers' discretion

Assets under management (AUM) stand at $81.9M, and the total expense ratio is 0.80% per year.

Given its active, concentrated nature, its fees tend to be higher than those of broad passive core ETFs, and its performance depends heavily on the managers' selection skill.

Active concentrated strategies tend to show wide swings in returns depending on market conditions and the performance of the selected stocks. Periods of outperformance or underperformance relative to broad indexes can be pronounced.

It belongs to a category of relatively small to mid-sized assets, and fund flows are influenced by overall interest in active ETFs and perceptions of management performance. Because of its concentrated nature, individual stock events can also show up in fund flows.

Its strength is the potential for excess returns through active stock selection, while its drawbacks are the volatility that comes with concentrated investing and relatively high fees.

Option-based and hedged equity ETFs such as HELO and FHEQ, which also appear in the table, focus on downside protection, while tail-risk hedging products like CAOS, large-cap core active funds like INFO, and tax-efficient strategies like CBOX each take a different approach. These emphasize risk management or specific objectives, whereas this ETF focuses on outperformance through stock selection. Fee levels also differ by category, with low-fee and relatively high-fee products mixed together, so it is advisable to compare strategy characteristics and fee differences together.

Here are the points to check before investing in FCUS. With active concentrated ETFs, it is necessary to confirm the strategy, costs, concentration risk and liquidity in advance, and it is advisable to approach them with an understanding that they differ in nature from products that track broad indexes.

Volatility from concentration in a small number of stocks is the key risk factor, and if management performance is weak, the fund can lag broad indexes significantly. When asset size is small, liquidity should also be checked.

It is an active concentrated ETF that may be considered by investors seeking excess returns through active stock selection rather than index tracking. However, it is advisable to thoroughly review concentration risk, costs and dependence on management before investing.