If You Invested in Eventide Large Cap Growth ETF (ESLG)

Eventide Large Cap Growth ETF (ESLG) is an exchange-traded fund sponsored and advised by Eventide Asset Management, LLC, a Boston-based investment adviser. ESLG trades on NYSE Arca and is part of Eventide's lineup of systematic ETFs, which are designed to serve investors while reflecting the firm's stated focus on advancing the global common good through its values-based investment approach.

According to Eventide, its systematic ETFs, including ESLG, seek to combine elements of a passive investment style with an active strategy. The firm describes an approach that uses quantitative risk modeling and testing to shape portfolios that seek to align with benchmark factors such as beta (market sensitivity), investment style, and sector characteristics. At the same time, Eventide emphasizes that these ETFs are not index funds and that Eventide is not required to purchase any specific securities or any particular amount of securities included in each fund's benchmark.

Faith-based and values-driven screening

A central feature of ESLG, as part of Eventide's systematic ETF family, is the use of a faith-based, values-oriented screening process. Eventide states that all potential investments are filtered through its proprietary Business 360® methodology. This framework evaluates companies based on both their long-term competitive advantage and their impact on human flourishing, including a review of the products they offer and an appraisal of their business practices.

Companies that meet Eventide's standards through this Business 360® assessment form what the firm describes as a distilled investable universe. ESLG's portfolio is then constructed from this refined universe, with the goal of maintaining alignment with its benchmark's factor profile while reflecting Eventide's values-based criteria.

Benchmark and investment framework

Eventide identifies the benchmark for the Eventide Large Cap Growth ETF (ESLG) as the Bloomberg US 1000 Growth Total Return Index. This index is described as a float market-cap weighted benchmark consisting of companies within the Bloomberg US 1000 Index that have the highest growth factor scores based on measures such as earnings yield, valuation, dividend yield, and growth. Eventide notes that investors cannot invest directly in an index and that unmanaged index returns do not reflect fees, expenses, or sales charges.

Within this framework, ESLG is presented as a large-cap growth ETF that seeks risk and returns that track its benchmark's characteristics while applying Eventide's Business 360® methodology. The fund is part of a group of systematic ETFs that also includes the Eventide Large Cap Value ETF (ESLV) and the Eventide Small Cap ETF (ESSC), each with its own stated benchmark.

Systematic ETF family context

The launch of ESLG followed Eventide's earlier introduction of the Eventide US Market ETF (ESUM), described by the firm as its first systematic ETF. ESLG, together with ESLV and ESSC, expands Eventide's systematic ETF offerings for investors who seek broad market exposure combined with the firm's Business 360® expertise and faith-based values orientation.

Eventide explains that its systematic strategies aim to provide access to rigorous faith-based investing at competitive fees, with risk and return characteristics that seek to track each fund's benchmark. The firm characterizes its Business 360® framework as combining data and human discernment to evaluate both value creation and value extraction by companies, viewing this as a 360-degree assessment of corporate behavior and impact.

Management and advisory structure

Eventide Asset Management, LLC serves as the investment adviser to ESLG and the other Eventide systematic ETFs. The firm states that ESLG, ESLV, and ESSC are managed by Chris Grogan, CFA, Director of Asset Allocation Services, and Tyler Frugia, Head of Portfolio Analytics. Eventide attributes the development of its systematic framework and key components of the Business 360® process to these managers.

Distribution for the Eventide ETFs, including ESLG, is handled by Foreside Fund Services, LLC. Eventide notes that Foreside is a separate entity and is not affiliated with Eventide.

Risk considerations and disclosures

Eventide emphasizes that investing in securities involves risk, including the possible loss of principal, and that there is no guarantee any investment strategy will achieve its objective, generate profits, or avoid losses. The firm also notes that its values-based approach to investment may not produce the desired results and could result in underperformance compared to other investments.

Eventide highlights that the ETFs, including ESLG, are new and have a limited history of operation for investors to evaluate. The firm encourages investors to review each fund's prospectus, summary prospectus, and statement of additional information to understand investment objectives, risks, charges, and expenses before investing.

Philosophy and branding

Eventide describes its trademark "Investing that makes the world rejoice®" as a figurative expression intended to explain its focus on serving investors by helping them improve the world. This philosophy underlies the Business 360® methodology applied to ESLG and the other systematic ETFs, reflecting the firm's emphasis on faith-based values and the assessment of companies based on both financial and ethical considerations.