Sign up to receive free updates on Exchange Traded Funds
We’ll send you a daily email digest with the latest news on Exchange Traded Funds every morning.
Latest News on ETFs
Visit our ETF Hub for more information and to explore our comprehensive data and comparison tools.
GMO, the value-oriented investment firm co-founded by Jeremy Grantham, is planning to launch its first exchange traded fund, according to a recent regulatory filing.
The GMO US Quality ETF, an actively managed fund, will primarily invest in companies that are considered to be of “high quality”. The fund aims to generate a high return on past investments and will use cash flow for investments with high return potential or to return cash to shareholders through dividends, share buybacks, or other mechanisms.
In addition to direct equity investments, the ETF may also invest in exchange-traded and over-the-counter derivatives and other ETFs.
This article was originally published by Ignites, a title owned by the FT Group.
The fund may also invest in the $432 million GMO US Treasury Fund.
The ETF will be managed by Thomas Hancock, head of GMO’s focused equity team, along with portfolio managers Ty Cobb and Anthony Hene. These managers also oversee GMO’s existing Quality and Quality Cyclicals mutual funds.
Fees for the ETF have not been disclosed.
Latest News on ETFs
Visit the ETF Hub to find out more and explore our in-depth data and comparison tools for performance and ESG ratings.
According to Daniil Shapiro, director of product development at Cerulli Associates, it’s not surprising that active managers are launching ETFs. Advisors are becoming more comfortable with the ETF structure and increasing their allocations to it. He also added that offering ETF products allows for more tax-efficient exposures compared to mutual fund products.
*Ignites is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available at ignites.com.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
