Cedar Small Cap Software Fundamental Index
Avoid weak fundamentals offered by plain vanilla passive investing
Software is leading the world, every year disruptors enter the market through IPOs. Growth investors seeking exposure to newest disruptive trends are jumping on the bandwagon. Spoiler alert! Fundamentals of a lot of software and technology companies undergoing an initial public offering do not reflect sustainable cash flows and viable shareholder returns.
Investors selecting purely passive ETFs are subject to falling into the loophole of plain-vanilla exposures by investing in companies with weak fundamentals or lax corporate governance.
CDRS seeks to select the best small cap software companies in terms of earnings momentum and sustainable cash flows.