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I was looking at non–sector-specific ETFs with a high NVO weight and identified PFOE (Pathfinder Focused Opportunities ETF) as having one of the highest allocations. The ETF also includes many companies frequently recommended on this sub, such as GOOG, ASML, MELI, UNH and others.
PFOE positions itself as a quality ETF rather than a value ETF. This makes sense, as most companies recommended in the subreddit are quality & growth companies rather than traditional value names. According to Morningstar, the ETF is classified as a growth fund, which is consistent with expectations.
# Main Issues I See
1. Unclear holding horizon
The fund states that it targets long-term holdings, but “long-term” is subjective. I personally plan to hold many of these stocks for at least five years, and it’s unclear whether the fund will maintain positions for that long.
2. Expense ratio (0.59%)
With only 23 holdings, the portfolio is relatively easy to replicate. This raises the question of whether the expense ratio is justified compared to holding the stocks directly.
3. Small and new fund
Pathfinder currently offers only two ETFs, and PFOE has a very recent inception date. Assets under management are still small (~$30.8M), which may raise concerns about liquidity and long-term viability.
4. Manager track record
While the managers appear experienced, they are not well-known in the ETF space. To my knowledge, they have not previously managed their own ETF.
Overall, I find this ETF interesting and well-aligned with a quality/growth investing approach. However, the relatively high expense ratio, small AUM, and limited track record make me hesitant. I’m interested in hearing the community’s thoughts.
## Current ETF Holdings
| No. | Symbol | Name | % Weight | Shares |
|----:|:---------|:---------------------------------------------------|:--------:|-------:|
| 1 | GOOG | Alphabet Inc. | 7.26% | 6,664 |
| 2 | AMZN | Amazon.com, Inc. | 5.93% | 7,735 |
| 3 | ASML | ASML Holding N.V. | 5.85% | 1,428 |
| 4 | MELI | MercadoLibre, Inc. | 5.68% | 833 |
| 5 | NVO | Novo Nordisk A/S | 5.52% | 28,917 |
| 6 | TSM | Taiwan Semiconductor Manufacturing Company Limited | 5.30% | 4,998 |
| 7 | QXO | QXO, Inc. | 5.23% | 63,189 |
| 8 | UBER | Uber Technologies, Inc. | 5.03% | 18,326 |
| 9 | BME: FER | Ferrovial SE | 5.01% | 22,848 |
| 10 | LLY | Eli Lilly and Company | 4.97% | 1,428 |
| 11 | UNH | UnitedHealth Group Incorporated | 4.91% | 4,522 |
| 12 | BABA | Alibaba Group Holding Limited | 4.46% | 8,092 |
| 13 | V | Visa Inc. | 4.44% | 4,165 |
| 14 | INTU | Intuit Inc. | 4.15% | 2,261 |
| 15 | NKE | NIKE, Inc. | 4.12% | 19,397 |
| 16 | MSFT | Microsoft Corporation | 4.08% | 2,737 |
| 17 | BN | Brookfield Corporation | 3.90% | 25,466 |
| 18 | ZTS | Zoetis Inc. | 3.83% | 9,401 |
| 19 | UNVGY | Universal Music Group N.V. | 3.82% | 92,106 |
| 20 | NFLX | Netflix, Inc. | 3.65% | 12,733 |
| 21 | NVDA | NVIDIA Corporation | 1.91% | 3,213 |