Mastercard is a top-five position in TGRT because the team has a differentiated thesis and believes it can outperform some of the Magnificent Seven and highly concentrated benchmark names.
Deep concentration in large-cap growth gives active management a chance to differentiate; TGRT's top five holdings differ from the benchmark and include a biotech name and Mastercard, with selection based on valuations, earnings, free cash flow and durability of growth.
Small and mid-cap stocks trade at a 25-35% discount to large caps, earnings estimates are inflecting after 10 quarters of declines, and consensus expects acceleration; active ETF TMSL uses bottom-up research to capture these gains.