We seek to demonstrate to the world that character matters.
ROC (Return on Character) Investments, the sub-advisor for the ROC ETF (ticker: ROCI), believes the market consistently misprices the value of exceptional leadership over the long term. The ROC ETF purchases U.S. companies whose management’s behavior exemplifies what we believe to be the highest level of character. The Fund’s portfolio will generally hold stocks of 75 to 150 companies with the highest Composite Character Scores. The ROC ETF will begin by initially weighting the portfolio’s securities to mirror the return profile of the largest 1000 US securities as measured by market capitalization (with companies scoring highest on CEO character as described above). Portfolio weights are reviewed quarterly and adjusted at the sub-advisor’s discretion.
On an annual basis, the ROCI ETF will re-evaluate each CEO’s Composite Character Score. New CEOs that receive favorable Composite Character Results may be added to the Fund. Conversely, a CEO whose Composite Character Score is lower because of material events or data may be removed. The sub-advisor will typically sell a particular position when (i) a high-character CEO announces that they will exit their company, (ii) a particular CEO’s behavior violates the sub-advisor’s proprietary character and integrity criteria described above, or (iii) a quarterly rebalance removes a company to maintain its broader return profile. Because high-character CEOs tend to stay at a single company for longer periods of time, portfolio turn- over level is expected to be modest to low.
The Return On Character ETF is an actively managed Exchange Traded Fund (ETF) that seeks capital appreciation by investing in character-led organizations.