Motley Fool Asset Management kicked off a fresh wave of product expansion, launching three new factor-focused ETFs on Tuesday, its first lineup in nearly four years. All of the funds are passively managed, drawing on the firm’s long-running investing philosophy rooted in data-driven stock selection.

The new additions include the Motley Fool Innovative Growth Factor ETF (NASDAQ:MFIG), Motley Fool Value Factor ETF (NASDAQ:MFVL) and Motley Fool Momentum Factor ETF (NASDAQ:MFMO), each charging 0.50% as fee. All three follow indexes designed to reflect what the company describes as its “evidence-based investing principles,” based on composite factor scores which determine which companies make the cut.

For each ETF, the road to factor exposure is different:

  • MFIG evaluates companies on gross profit growth, profit innovation and future growth potential.
  • MFVL aims to bypass traditional value traps by relying on metrics like adjusted Book-to-Price, Gross Profits-to-Enterprise Value (EV), and total shareholder yield.
  • MFMO screens stocks using composite price momentum, factor momentum and an adjusted price-to-low measure.

The prospectus indicates that all three indexes aim for roughly 150 holdings apiece.

The launch marks the start of a bigger transformation for the fund family. In September, the company announced that it plans to add 15 new ETFs over time as part of a broad expansion. Before today's additions, Motley Fool Asset Management already ran six ETFs spanning both active and passive strategies and managing more than $2.5 billion combined. Its largest product remains the Motley Fool 100 Index ETF (BATS:TMFC), commanding $1.9 billion in assets.

With its newest trio of funds, the firm is betting that factor investing-wrapped in the Motley Fool brand of research-driven discipline-will resonate with investors looking beyond traditional index trackers.

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