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New Hypergrowth ETF Promises Access To Stocks Growing 40%+, Beyond Mag 7

Golden Eagle Strategies is coming into the ETF space with a daring sales pitch: ditch the overused Magnificent Seven, look at firms accelerating their revenues at breakneck paces.

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On Tuesday, the Tampa-based money management firm introduced the Golden Eagle Dynamic Hypergrowth ETF (NYSE:HYP), an active strategy focusing on U.S.-listed firms that are recording 40% or higher annual sales growth.

While most growth ETFs are densely concentrated in mega-cap tech, HYP seeks to diversify across industries. The fund managers contend that hypergrowth isn’t a monopoly of Silicon Valley; rapidly scaling companies in health care, energy and industrials also qualify.

The methodology of HYP starts with a wide screen of U.S.-listed companies numbering in the thousands, winnowing prospects by revenue pattern, momentum and liquidity. The end portfolio will be 60 to 80 names in length, purposefully avoiding concentration in known large-cap indices.

Golden Eagle Managing Principal and Portfolio Manager Marc Zuccaro said traditional growth ETFs tend to fall short of the up-and-coming leaders, which is where the true alpha lies.

Robert Zuccaro, firm founder and CIO, further noted that HYP is intended to address what he refers to as “the hypergrowth hole” in many investors’ portfolios. While investors are already swimming in mega-cap tech exposure, HYP digs faster-growing companies that get less attention.

With 40 years of collective portfolio management experience, the Golden Eagle team asserts the ETF is poised to catch growth where it is growing most rapidly, not where it has already peaked.

As the saturated U.S. growth ETF market continues to shift, HYP’s wager is that investors will be willing to bet on tomorrow’s champions rather than doubling down on today’s titans.

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