RUK Funds Launches Strategic Growth ETF Targeting Factor-Driven Outperformance

How the RKSG ETF Works

RKSG is built on the Ruk Strategic Growth Index, a proprietary benchmark developed by Ruk Indexes LLC and calculated by VettaFi, using a fully systematic, data-driven process.

The strategy starts with the 1,000 largest U.S.-listed companies, creating a broad and liquid opportunity set, while excluding ADRs to maintain consistency.

From there, each company is put through a rigorous multi-factor screen that blends growth and value signals.

On the growth side, the model looks for forward momentum, evaluating price trends, revenue expansion, valuation metrics, profitability, and asset growth to identify companies with strong upside potential.

At the same time, the value framework anchors the strategy in fundamentals, assessing cash flow efficiency and EBITDA relative to enterprise value to ensure companies are not just growing, but doing so efficiently.

These insights are then combined into a single composite score, with a deliberate tilt toward higher-growth names.

The final step is where the strategy differentiates further.

A proprietary weighting model integrates volatility controls, aiming to capture growth while smoothing the ride through different market environments.

Portfolio Construction and Sector Exposure

RKSG follows a passive replication approach, investing at least 80% of its assets in index constituents, while retaining the flexibility to use representative sampling to enhance efficiency when needed.

The portfolio closely tracks the index’s sector and industry exposures, with a notable tilt toward Information Technology, which represents nearly 38% of the index, reflecting the sector’s leadership among high-growth large-cap equities.

At launch, the fund holds 233 securities, led by NVIDIA (12.8%), Apple (9.3%), and Alphabet (8.1%), alongside Microsoft and Broadcom. Other top names include Johnson & Johnson, Merck, and Lockheed Martin.

The fund trades on the NYSE and has expense ratio of 0.50%

The Investment Case: Why Consider RKSG?

RKSG provides a rules-based approach to U.S. large-cap investing, systematically screening the 1,000 largest listed companies across a blend of growth and value factors, removing the behavioral biases often seen in traditional stock selection.

Its multi-factor framework pairs disciplined screening with a volatility-aware portfolio construction process, designed to navigate different phases of the economic cycle.

The result is a consistent, data-driven strategy focused on high-quality companies, offering investors a compelling option for long-term growth and diversified large-cap exposure.

About RUK Funds

RUK Funds is an emerging ETF company and index developer founded by practitioners with deep expertise in quantitative research, data engineering, and financial product development dedicated to bringing differentiated, rules-based factor strategies to market. RUK Funds is built on the belief that disciplined, systematic investing should be accessible to all investors.

Our approach combines rigorous index construction with a long-term vision for factor-based investing, grounded in established financial models and researched investment principles. Looking ahead, we are committed to expanding our suite of ETFs designed for long-term relevance, implementing strategies built to deliver consistent, transparent exposure across market cycles to align with the evolving needs of today's investors.

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.