USCF Restaurant Leaders Fund (NYSEARCA:MENU) is a new entry in the ETF world, launched in November 2016 with the intent of capitalizing on one of the fastest growing segments in the United States, the restaurant industry. The restaurant industry is huge and as stated on USCF's website:
In an industry that employs over 14.4 million people and serves about 50 million people each day (numbers which are expected to increase), it is easy to understand how the restaurant industry represents approximately 4% of U.S. Gross Domestic Product (GDP).
NOTE: Due to the short length of time since launch, this ETF still has a modest level of Assets Under Management (AUM) of approximately $2 million. ETFs with low AUM are generally not suitable for newbies and other investors not familiar with ETF liquidity issues.
The Special Sauce
MENU attempts to achieve superior performance by providing a bias towards Quick Service Restaurants (NYSE:QSR). QSRs in total have an initial total weight of 70%. The remaining 30% is equally distributed among securities classified as Full Service Restaurants ((FSRs)).
Market signals are used to eliminate securities with the lowest expected future performance and to increase the weighting of the largest companies in the Index.