~200% exposure to intangible factors (vs. S&P 500)
Source: S&P, USPTO, LinkedIn, Sparkline. All calculations are weighted averages with weights equal to position size. R&D, S&M, and patents are calculated over a trailing 12-month window. The S&P 500® is a popular gauge of large-cap U.S. equities that includes 500 leading companies. Characteristics refer to the underlying stocks and do not predict the performance of the fund. As of 9/30/2023.
R&D / Price is research and development expenditures divided by market cap. S&M / Price is sales and marketing expenditures divided by market cap. Patents / Price is the number of patent grants divided by market cap. PhDs / Price is the estimated number of PhD employees divided by market cap. *Patents and PhDs are scaled by billions (e.g., # patents per $1 billion market cap).
The red metrics are Sparkline’s proprietary intangible value scores, which are constructed from the weighted average of metrics such as those shown in blue (after being normalized via Z-Score). Disruptive companies are defined using a proprietary classification based on each firm’s exposure to disruptive technologies (e.g., artificial intelligence, cloud computing).