Invest Like the Guru’s: GFGF ETF Follows the Market’s Top Minds
By Charlie Tian
- Top investment gurus have a strong long-term track record—worth following
- Our 5-step investment process seeks to systematically replicate their key holdings
- We aim to prioritize quality, growth and valuation—buying great ideas at the right price
The transparency of the U.S. capital markets means individual investors don’t need to start from scratch. Renowned investors like Warren Buffett, Bill Ackman, and David Tepper publicly disclose their holdings—giving you access to some of their best ideas.
We’ve built an ETF—GFGF—that aims to follow a disciplined, systematic process to mirror the core positions of these investment giants.
Systematic Investment Process
Step 1: Identify the Gurus
We track the portfolio holdings of around twenty highly successful investors with strong long-term track records. Here are some examples:
- Warren Buffett
- David Tepper
- Chase Coleman
- Bill Ackman etc.
Step 2: Quality Test
We analyze each company’s quality based on its financial strength, profitability and growth.
For financial strength, these and more factors are considered:
- Interest coverage ratio
- Altman Z-Score
- Equity-to-Asset ratio
For profitability we consider these and more factors:
- Mean operating margin (10-year mean profit margin)
- Operating margin growth
- Piotrowski F-Score
These and more factors are considered when analyzing its growth:
- 5-year revenue growth rate
- 3-year revenue growth rate
- 5-year EBITDA growth rate
We seek to invest only in companies that demonstrate exceptional financial strength, profitability, and growth relative to others in their industry.
Step 3: Value Test
To be included in the portfolio, each stock must be trading at an attractive valuation relative to its fair market value. We estimate intrinsic value by analyzing historical correlations between the stock price and key business performance metrics—such as revenue, earnings, cash flow, and book value.
We identify which metrics have shown the strongest historical relationship with the stock price and determine the typical valuation multiple over time. These historical multiples, combined with projected future growth, are used to estimate the stock’s fair value.
Step 4: Portfolio Construction
The Fund typically holds approximately 25 to 35 equity securities. Position weights are influenced by the number of Gurus holding each stock—meaning companies with broader Guru ownership, often larger-cap names, tend to have higher weightings. The Fund may hold up to 100% in cash when suitable investment opportunities meeting our quality and valuation criteria are limited.
Step 5: Rebalancing
The portfolio is rebalanced quarterly, in line with the updated disclosures from the selected investment Gurus. However, since the Gurus we track typically maintain low portfolio turnover, these updates historically result in minimal changes to our holdings. Instead, valuation plays a more significant role in shaping the portfolio. We review stock valuations at least weekly, and if a holding becomes significantly overvalued, it may be replaced with a stock that is undervalued or fairly valued.
Table 1: Fund Performance
| Fund Name | Ticker | 2025 YTD % | 1-Year Return % | 3-Year Annualized Total Return % | Since Inception Total Return % (12/16/2021 - 10/31/2025) |
|---|---|---|---|---|---|
| Guru Favorite Stocks | GFGF (MKT) | 10.04 | 13.67 | 20.06 | 39.2 |
| Guru Favorite Stocks | GFGF (NAV) | 9.84 | 13.79 | 20.07 | 39.2 |
| Russell 1000 Value | IWD | 10.72 | 6.25 | 11.51 | 23.9 |
Data: GuruFocus.com. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar.
Dates: Since Inception 12/16/2021 – As of 10/31/2025
The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. Shares are bought and sold at market price not net asset value (NAV). Market price returns are based upon the closing composite market price and do not represent the returns you would receive if you traded shares at other times. For current month end and standardized performance of the Fund, visit GFGF ETF website or call 972.379.7896.
The referenced index is shown for general market comparisons and isnot meant to represent the Fund. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
In Summary
The GFGF ETF provides unique access to the top holdings of renowned investment Gurus, enhanced by a disciplined focus on quality and valuation. It stands out as a distinctive option in today’s ETF landscape. If you’re an advisor interested in learning more, feel free to contact us or subscribe to our email updates for additional insights.
Important Information
The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The Prospectus and Summary Prospectus contains this and other important information about the investment company, and it may be obtained by calling 215-330-4476 or visiting www.GuruFocusETF.com/gfgf/. Read it carefully before investing.
Investments involve risk. Principal loss is possible. The Fund is actively managed and may not meet its investment objective based on the Adviser’s success or failure to implement investment strategies for the Fund.
For a glossary of terms, click here: https://gurufocusetf.com/glossary/.
ETFs may trade at a premium or discount to their net asset value. Redemptions are limited and often brokerage commissions are charged on each trade which may reduce returns.
The Sub‐Adviser considers a Guru to be a prominent long‐term investor and must have a long‐term, publicly available, track record of at least ten years. In addition, the Guru must follow an investment strategy of investing in companies that the Guru considers to be high‐quality. Securities recommended for the Fund is based on publicly available information, however, it may not always reflect real‐time portfolio holdings. As a result, the Fund may purchase or retain securities that are no longer favored by the Gurus, which may hurt the Fund’s performance.
The Fund may be subject to quantitative security selection risk. Data for some companies may be less available or current and could perform differently from the financial markets as a whole. Because the Fund’ portfolio is reconstituted on a semi‐annual basis, the Fund’ market exposure may be affected by significant market movements following a reconstitution or may lag a significant change in the market’s direction. Such lags between market performance and changes to the Fund’s exposure may result in significant underperformance relative to the market.
The fund may invest in medium‐capitalization companies which may be subject to greater risks than large company stocks due to limited resources and inventory as well as more sensitivity to adverse market conditions.
For a complete description of the Fund’s principal investment risks, please refer to the prospectus.
Rebalancing/Reallocating can entail transaction costs and tax consequences that should be considered when determining a rebalancing/reallocation strategy.
The information provided here is for informational purposes only and investors should determine for themselves whether a particular service or product is suitable for their investment needs. Investments in securities entail risk and are not suitable for all investors. Nothing herein constitutes or should be construed as an offering of securities or a recommendation to purchase or sell securities. Please refer to the disclosure and offering documents for further information concerning specific products or services. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager.
All expressions of opinion are subject to change without notice in reaction to market conditions. Data contained here from third-party providers are considered reliable sources. However, its accuracy, completeness or reliability are not guaranteed.
The Fund is distributed by PINE Distributors LLC. The Fund’s investment adviser is Empowered Funds, LLC, which is doing business as ETF Architect. GuruFocus Investments, LLC serves as the Sub-adviser to the Fund. PINE Distributors LLC is not affiliated with ETF Architect or GuruFocus Investments, LLC. Learn more about PINE Distributors LLC at FINRA’s BrokerCheck.
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