The MFIG ETF is a passive exchange-traded fund designed to track the Motley Fool Innovative Growth Index. It reflects a rules-based selection methodology focused primarily on U.S. growth-oriented companies, making it sensitive to changes in earnings expectations and market valuations of individual growth names.

It is well suited for long-term investors who want rules-based exposure to U.S. growth stocks while reducing the burden of single-stock selection.

The ETF is managed by Motley Fool Asset Management and operates as a passive (index-tracking) fund.

� How to Invest in the Motley Fool Innovative Growth ETF

The MFIG ETF employs a passive strategy that follows the construction methodology of the Innovative Growth Index derived from Motley Fool's analytical and recommendation framework. By targeting U.S. growth-oriented companies that meet liquidity criteria, the fund's performance is heavily influenced by growth-sector returns, including technology and communication services. The disclosed holdings include GOOG, META, AAPL, NVDA, NFLX, with additional names such as SNOW, CRWD, UBER, LRCX, and TJX.

• Utilization of Motley Fool's rules-based growth-stock index
• Passive structure with the potential for concentration in select growth names

Assets under management (AUM) stand at $10.8M, with a total expense ratio of 0.50% annually.

Funds with limited operating histories require individual verification of trading liquidity and bid-ask spreads. The expense ratio should be compared with peer growth-oriented ETFs, and investors should assess whether the index inclusion criteria align with their investment objectives.

Given its growth-stock tilt, flows into the MFIG ETF can rise and fall with growth-stock investor sentiment, interest-rate movements, and the earnings outlook for major holdings. Because of its index-tracking structure, the cumulative impact of individual constituents can cause performance to diverge from the broader market.

When interpreting fund flows, it is important to separately review the product's operating history, trading volume, and changes in net assets. Periods of strong growth-stock appetite can drive higher investor demand, while risk-off environments may amplify volatility and accelerate capital rotation.

Rules-based growth-stock exposure is a clear strength, while the undiversified structure, growth-stock sensitivity, and absence of distribution history warrant closer review.

The VUG ETF shown in the table provides Vanguard's growth-stock exposure and serves as a benchmark comparison, while the IWF ETF covers the Russell 1000 Growth category and the IVW ETF covers the S&P 500 Growth category. The SCHG ETF and SPYG ETF are also worth comparing within the large-cap growth category across expense ratios, assets under management, index construction, and liquidity. Because the MFIG ETF focuses on a proprietary rules-based growth-stock index, investors should review the inclusion criteria and concentration levels of each product individually.

When evaluating the MFIG ETF, investors should review the growth-index inclusion rules, portfolio concentration, trading convenience, and cash distribution policy together. Because the fund uses a passive structure, the appropriate approach is to understand the characteristics of the index exposure rather than to expect defensive management during market downturns.

Because the MFIG ETF has an undiversified structure, price moves in individual holdings can be magnified, and the passive management approach means the fund does not take defensive positions in unfavorable market environments. For investors investing in non-USD currencies, exchange-rate fluctuations can also affect gains and losses.

The MFIG ETF offers a clearly defined structure for investors who want to use Motley Fool's rules-based growth-stock approach. However, it may not suit those seeking regular cash distributions, and it is advisable to review the growth-stock concentration, trading convenience, and cost relative to similar products before investing.