Rainwater Equity Launches RW ETF, Targeting Durable, Recurring Revenue Businesses 

How RW Works 

RW is an actively managed, high-conviction growth strategy. 

The portfolio manager and founder of Rainwater Equity — Joseph Shaposhnik — takes a hands-on, global approach—identifying companies with resilient business models, predictable cash flows, and management teams that consistently deliver. 

As Shaposhnik explains:

"We invest in dominant businesses that generate repeat purchases from loyal customers — software providers, waste haulers, auto parts manufacturers, and stock exchanges. These companies tend to grow free cash flow more predictably and experience fewer negative surprises. We hold them for the long term." 

Instead of spreading bets thin, the fund concentrates capital in a select group of mid- to large-cap companies from developed markets. Holdings often exceed 5%—sometimes even 10%—of the portfolio, reflecting deep conviction in each idea. 

While at least 80% of assets remain in equities, RW retains flexibility—occasionally tapping into IPOs or other ETFs for strategic exposure.

Positions are trimmed or sold when the investment thesis no longer holds. 

As of June 18, 2025, the fund holds 26 companies, including names like Constellation Software, TransDigm Group, General Electric, Verisk Analytics, HEICO, Microsoft, Roko AB, Waste Connections, Broadcom, and Lifco AB, among others.

RW carries an expense ratio of 1.25%.

Why RW Belongs in Your Portfolio 

RW is designed to serve as a core equity holding, particularly for investors looking to build wealth steadily without chasing short-term performance trends.

Its focused portfolio of high-conviction names offers clarity and consistency in an often over-diversified market. The ETF's structure supports: 

• Predictability and Stability: By targeting recurring revenue businesses, RW aims to reduce downside surprises and deliver more consistent growth. 
• Tax Efficiency: The ETF format minimizes churn, helping lower the annual tax burden for investors. 
• Alignment with Investors: Managed by Joseph Shaposhnik, an investor with a top-decile track record and significant personal capital in the fund, RW emphasizes long-term alignment over performance fees or style drift. 
• Simplicity and Discipline: RW is a straightforward, single-strategy fund that avoids unnecessary complexity while staying committed to its long-term investing philosophy. 

About Rainwater Equity  

Rainwater Equity LLC is an independent investment firm built around the principle of long-term ownership in high-quality businesses. With a focus on recurring revenue models and shareholder alignment, Rainwater offers a concentrated approach to equity investing through a single, transparent ETF structure. The firm is led by founder and CEO Joseph Shaposhnik and is committed to helping advisors grow client wealth with greater confidence and fewer surprises. 

Learn more at: rainwateretf.com 

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision. 

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.