TOGA: Quant Ranking's #1 Global Large-Cap Growth ETF

The Tremblant Global ETF (TOGA), which invests in 30-50 global securities, receives a "Buy" rating based on its first year performance as a public fund and its longer history as a private fund, both demonstrating alpha generation relative to index-based ETFs like VTI and ACWX. TOGA has $176MM in AUM and a 69 basis point fee, employing a long-term, fundamental, bottom-up approach, with a concentrated portfolio favoring Consumer Discretionary and Communication Services sectors; investors should note the fund's concentrated allocation and potential for wide swings in US/international stock allocation.

Analysis

The Tremblant Global ETF (TOGA), which transitioned to a publicly traded fund on April 30, 2024, currently manages $176 million in assets with an expense ratio of 69 basis points. The fund has received a 'Buy' rating, primarily reflecting its alpha generation since its public inception, strongly supported by a more extensive alpha-generating track record during its tenure as a private fund, which commenced on August 1, 2022, when benchmarked against the MSCI World index and broad market ETFs like VTI and ACWX. TOGA employs a long-term, fundamental, bottom-up investment strategy, explicitly aiming to double investments within a three-year timeframe by holding a concentrated portfolio of 30-50 global securities. This concentration is evident as 85% of its assets are currently allocated to its top three sectors, with Consumer Discretionary and Communication Services alone accounting for 55% of the portfolio, and the top 10 holdings constituting 38% of total assets. While its US equity exposure was 58% as of March-end 2024, this figure is subject to significant fluctuation under its active management approach. Performance data incorporating its private fund history indicates TOGA has outperformed peer ETFs such as FWD, FBOT, and CGGO, reportedly achieving superior Sharpe and Sortino ratios. It is noteworthy that despite the fund's FactSet stating annual dividend payments, no distribution was made by its first year-end as a publicly traded entity.

Key Decisions for Investors

• Investors seeking exposure to an actively managed global equity strategy with demonstrated alpha generation potential may find TOGA a compelling option, understanding that positive assessments rely on its brief public trading history supplemented by a longer private fund performance.
• Prospective investors must carefully evaluate the fund's high portfolio concentration, with 85% of assets in three sectors and significant individual holdings, which introduces substantial idiosyncratic risk tied to the performance of these specific investments and sectors.
• One should anticipate dynamic shifts in geographic (US versus international) and market-cap allocations due to TOGA's active management style, and the current absence of dividend distributions, contrary to stated policy, warrants ongoing monitoring.