Masters in Business · Wednesday, September 16, 2026
The Founders 100 ETF (FFF) utilizes a modified market cap weighting strategy, capping any single position at 7.5%. This approach allows for diversification, ensuring that smaller holdings can contribute to overall portfolio performance even when larger positions underperform. The portfolio is rebalanced quarterly to reset these weightings.
“So we run a modified market cap weighting. That is, we take the market cap and we allow that to define how much position size we're going to take for each position.”
“The reason we modify it is we put a hard cap of 7.5%. So we rebalance quarterly. So every quarter we reset the portfolio.”
“It's sort of just we allow the market capitalization to set our position sizes.”