As of June 8, 2026, the so-called Magnificent Seven accounted for roughly 33.8% of the S&P 500, and the ten largest companies in the index made up close to 39% of its total market capitalization, among the highest concentration levels in the index’s modern history.¹ For advisors building growth allocations, that creates a quiet problem: a portfolio meant to capture innovation can end up resting on a handful of the same names.
A small segment of the market typically falls outside that concentration, defined by a single measurable trait. Hypergrowth Stocks are companies posting year-over-year revenue growth of 40% or more. According to research from Golden Eagle Strategies, these companies have represented only about 2% of the S&P 500 and roughly 5% of the Nasdaq 100 on average between 2009 and 2025.² The Golden Eagle Dynamic Hypergrowth ETF HYP -0.17% ▼ , which carries a TipRanks Analyst Consensus of Moderate Buy, is built to target that segment systematically.³ Past performance does not guarantee future results.
¹ Source: The Motley Fool, market-concentration data, as of June 2026.
² Source: Golden Eagle Strategies research, Bloomberg-sourced, 2009 to 2025 averages.
³ Source: TipRanks, Golden Eagle Dynamic Hypergrowth ETF (HYP) Smart Score page, as of 6/9/2026.
What Are Hypergrowth Stocks, and Why Do Conventional Screens Miss Them?
The defining feature of a Hypergrowth Stock is objectivity. A company either grows revenue by 40% or more year over year, or it does not. The concept itself is not new: it traces to a 2008 Harvard Business Review article on managing hypergrowth, and was later formalized by the World Economic Forum, which in a 2016 report with Ernst & Young described hypergrowth as compound annual growth above 40%.⁴ What Golden Eagle added was a rules-based way to measure it across the whole U.S. market in real time.
The harder question is why these companies might stay under-owned even after a decade of attention. Golden Eagle’s research points to several structural reasons. Market-cap-weighted indices tend to include companies only after they have already scaled, so much of the steepest growth happens before a name becomes a meaningful index constituent. Passive strategies inherit that benchmark constraint. Conventional screens built around price-to-earnings ratios and forward earnings are misaligned with companies prioritizing top-line acceleration over near-term profit, so many hypergrowth names are filtered out before an analyst ever looks at them. And because hypergrowth leadership rotates across sectors and market caps from quarter to quarter, capturing it requires active repositioning that index funds are not built to do.
Golden Eagle’s research, drawn from approximately 250,000 stock-performance periods dating back to 2009, also quantifies the historical reward for owning the segment. The firm’s study found that U.S.-listed companies with revenue growth above 40% delivered an annualized return of about 43% from 2009 to 2025, compared with roughly 15% for the broader S&P 500 over the same period.⁵ Those figures are retrospective and illustrative of the asset class studied, not a representation of any fund’s performance, and past results do not predict future returns. What they do illustrate is why a measurable, rules-based definition of hypergrowth can be a useful lens for the part of a growth allocation that is hardest to reach.
⁴ Source: Harvard Business Review, “Managing Hypergrowth,” April 2008; World Economic Forum, “Mastering Hypergrowth,” April 2016.
⁵ Source: Golden Eagle Strategies Hypergrowth Trend Report, March 2026, Bloomberg-sourced, 2009 to 2025.
Hypergrowth Rotates Across the Economy, Not Just Tech
The most common misconception about hypergrowth is that it lives only in technology. The data from 2025 tells a different story. Across Golden Eagle’s hypergrowth universe last year, the Materials sector nearly doubled its share of qualifying companies, while Energy also climbed as power demand from data centers grew.⁶ At the industry level, the number of hypergrowth companies in Metals and Mining went from a single name at the start of 2024 to sixteen by the end of 2025, fueled by strength in gold and silver, while the Software sector’s hypergrowth count rose from five to sixteen as the focus shifted toward AI infrastructure.⁶
That rotation is visible in how the Golden Eagle Dynamic Hypergrowth ETF actually looks today. Its current holdings span semiconductors and memory, optical networking, infrastructure, energy, biotech, and space, rather than clustering in a single theme.⁷ Recent market activity has reflected that breadth. TipRanks reported a Micron-led rally that drove a 13x volume surge in HYP, and a separate note covered Mizuho raising price targets across the AI-memory names the fund holds.⁸ The screen is built to surface fast-growing companies wherever the growth is occurring, not where it has already been rewarded.
⁶ Source: Golden Eagle Strategies Hypergrowth Trend Report, March 2026.
⁷ Source: Golden Eagle Dynamic Hypergrowth ETF holdings, as of 6/8/2026.
⁸ Source: TipRanks, “Micron-Led Rally Drives 13x Volume Surge in HYP ETF” and “Mizuho Raises Price Targets for AI Memory Stocks,” as of June 2026.
Inside the Portfolio: Three Holdings That Show the Range
HYP holds 60-80 names, weighted toward roughly equal weight so no single position dominates, and the book reads as a cross-section of where revenue is accelerating across the economy. Three current holdings as of June 2026 illustrate the spread. Holdings are subject to change. For the fund’s complete current holdings, visit hypergrowthetf.com.
Western Digital Corporation WDC +3.33% ▲ , the AI memory upcycle. Western Digital sits in the storage and memory complex that has re-rated as AI workloads drive demand for high-capacity drives. The stock carries a TipRanks Strong Buy consensus based on 16 Wall Street analysts, with an average 12-month price target of $548.31, representing roughly 47% upside from its recent price.⁹
Sterling Infrastructure STRL +0.90% ▲ , the data-center buildout. Sterling provides the site development and infrastructure work that data-center and large-scale construction depend on, putting it on the physical side of the same AI buildout. It holds a TipRanks Strong Buy consensus from 6 analysts, with an average price target of $928.00.¹⁰
Applied Optoelectronics AAOI -1.38% ▼ , optical connectivity. Applied Optoelectronics builds the optical transceivers that move data inside AI data centers, a corner of the supply chain seeing demand growth as hyperscalers expand capacity. The stock carries a TipRanks Moderate Buy consensus from 5 analysts, with an average price target of $151.30.¹¹
None of these is a mega-cap benchmark name, which is a key point. The screen is designed to find companies in the steep part of their growth curve across different sectors, not to mirror the concentration that already dominates most growth allocations.
⁹ Source: TipRanks, Western Digital Corporation (WDC) analyst forecast, as of 6/9/2026.
¹⁰ Source: TipRanks, Sterling Infrastructure, Inc. (STRL) analyst forecast, as of 6/9/2026.
¹¹ Source: TipRanks, Applied Optoelectronics, Inc. (AAOI) analyst forecast, as of 6/9/2026.
Four Steps in the Hypergrowth Screen
What distinguishes HYP from a conventional growth ETF is less the universe it considers and more the disciplined process it applies. The methodology runs in a repeating monthly cycle.
Daily Universe Scan. The process starts wide, evaluating thousands of U.S.-listed companies, including ADRs, every day. Rather than starting from an index, the screen assesses each company on revenue trajectory, growth velocity, and liquidity, casting a far broader net than a benchmark-based strategy would.
The 40% Threshold. From that universe, the screen isolates companies meeting the objective hypergrowth qualification: year-over-year revenue growth of at least 40% in the latest reported quarter. Liquidity and revenue-scale filters screen out thinly traded or micro-scale names, leaving a defined universe of genuine hypergrowth businesses rather than statistical noise.
Multi-Sector Construction. Qualifying companies are assembled into a portfolio of 60-80 holdings, balanced for liquidity and concentration and weighted to avoid overexposure to any single name. Because the screen carries no sector or market-cap bias, the resulting book reflects wherever hypergrowth is actually occurring.
Monthly Rebalance. Hypergrowth leadership rotates, so the fund re-runs the screen and repositions monthly. Companies that have decelerated below the threshold roll off, and newly qualifying names roll in, keeping the portfolio aligned with current growth leadership rather than a snapshot from a year earlier.
The fund trades on the Nasdaq, launched on September 23, 2025, carries an expense ratio of 0.85%, and is classified as non-diversified, with net assets of approximately $67.36 million as of June 22, 2026.¹² “HYP’s portfolio will include 60 to 80 names,” said Robert Zuccaro, CFA, Founder and Chief Investment Officer of Golden Eagle Strategies, at launch. “What it won’t include is overexposure to the legacy benchmarks or ‘Magnificent 7.’ Investors are already typically overexposed to those types of investments. It’s time to start a new conversation about where many investors should be seeking growth.”¹³
¹² Source: Golden Eagle Dynamic Hypergrowth ETF fund page market data, as of 6/22/2026.
¹³ Source: Golden Eagle Strategies launch press release, September 23, 2025.
Where Hypergrowth Can Fit in a Growth Allocation
Golden Eagle characterizes hypergrowth as a measurable, persistent, and structurally under-owned segment of the equity market. It shows up across sectors and market caps, it rotates over time. As such it can be routinely filtered out by the benchmarks and valuation screens that shape most growth allocations. The Golden Eagle Dynamic Hypergrowth ETF seeks to offer one approach to that segment: a systematic, rules-based screen that identifies companies posting 40% or greater revenue growth and rebalances monthly to follow that growth wherever it moves, resulting in exposure that complements rather than duplicates mega-cap-heavy core holdings.
Investors considering HYP should weigh the fund’s limited operating history as a recently launched ETF, the concentration risk inherent in a focused, non-diversified portfolio, and the model and growth-style risks that come with a quantitative strategy targeting high-growth companies, which can be more volatile than the broader market. Depending on an investor’s risk tolerance and time horizon, a hypergrowth allocation may complement a broader growth sleeve, but it is not a substitute for diversification across asset classes and sectors. Past performance does not guarantee future results. Investors should consider their own financial situation, investment objectives, and risk tolerance before investing.
Disclosures
This article is sponsored content created in partnership with Golden Eagle Strategies. It is intended for informational and educational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any securities. Investors should consider their own financial situation, risk tolerance, and investment objectives before making any investment decisions. Investing involves risk, including the possible loss of principal.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained by calling 855.994.4866. Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns.
The TipRanks Smart Score, Analyst Consensus, and price target figures referenced for HYP and its holdings are third-party data from TipRanks as of the dates noted. For ETFs, TipRanks calculates the Analyst Consensus and price target as the weighted average of the fund’s holdings plus additional factors. These figures are not a recommendation and do not represent the views of the Fund or its adviser.
The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus [BZ10] and summary prospectus contain this and other important information about the investment company, and they may be obtained by calling 855.994.4866 or visiting hypergrowthetf.com/hyp-etf. Please read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. As an ETF, the Fund’s shares may trade at a premium or discount to NAV. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions and bid-ask spreads may reduce returns. There is no guarantee that the Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment. The Fund, the Trust, the Adviser, the Sub-Adviser, and their respective affiliates make no representation as to the performance of any index. The Fund, Trust, Adviser, and Sub-Adviser are not affiliated with, nor endorsed by, any index.
ETF Structure Risk. The market price of the Fund’s shares will fluctuate in response to changes in NAV and supply and demand. Shares may trade at a discount or premium to NAV, and an active trading market may not develop or be sustained. Trading of the Fund’s shares on the exchange may be halted due to market conditions. Authorized Participants, market makers, and liquidity providers are not obligated to engage in creation and redemption activity, and the Fund may trade at a discount if they exit the business.
Equity Market Risk. Stock prices fluctuate, sometimes rapidly and unpredictably. The Fund may be affected by company-specific events, market conditions, or overall economic factors. Growth Style Risk. Growth stocks may be more volatile and more sensitive to earnings disappointments and may underperform other investment styles or the market as a whole. Small- and Mid-Cap Risk. Securities of smaller companies may experience more abrupt or erratic movements than those of larger, more established companies.
Foreign Securities and ADR Risk. The Fund may invest in ADRs and foreign securities, which involve additional risks, including currency fluctuations, political and economic instability, and differences in regulatory and accounting standards.
Quantitative Model Risk. The Adviser relies on proprietary models that may not perform as expected due to incorrect assumptions, inaccurate data, or unforeseen market conditions. Cybersecurity Risk. Failures or breaches of electronic systems at the Fund, Adviser, Sub-Adviser, or service providers could result in financial losses or operational disruptions. Management Risk. The Fund is actively managed, and the Adviser’s decisions may not produce the desired results. As a newly formed adviser, its limited operating history may present additional risks.
New Fund Risk. The Fund is recently organized, has no operating history, and currently has fewer assets than larger funds. As with other new funds, large inflows and outflows may impact market exposure for limited periods of time.
Diversification Risk. Diversification does not ensure a profit or protect against loss in a declining market.
The Fund defines a company as a “Hypergrowth Stock” if it has year-over-year revenue growth of at least 40% in the latest reported fiscal quarter.
For full fund details and the most recent prospectus, visit https://hypergrowthetf.com/hyp-etf/.
The Golden Eagle Dynamic Hypergrowth ETF is distributed by Foreside Fund Services, LLC.
Disclaimer & DisclosureReport an Issue
