Costco: Boring Is Beautiful

Costco's management built a genuine obsession with the member, a willingness to sacrifice margins to deliver value & loyalty, and a long-term orientation that makes quarterly guidance feel like noise. The balance sheet is pristine. Returns on invested capital are consistently above 20 percent. The store base is young in international markets. The membership fee increase cycle has just been initiated and it offers a sneaky inflation hedge over time. And the demographic tailwind — as millennials in their prime household spending years join Costco in record numbers — is only beginning. In a structurally inflationary world where every household is scrutinizing every dollar, the value proposition of a place that guarantees the lowest price on a broad selection of high-quality products is not cyclical. It is permanent. Costco is not a retail stock. It is one of the few consumer businesses that genuinely compounds intrinsic value over every economic cycle.Important InformationInvestors should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s statutory and summary prospectuses, which may be obtained at LogoETF.com. Read the prospectus carefully before investing.