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The GMO US Quality ETF (QLTY) launched on November 12, and as its name implies, the fund seeks to offer investors exposure to so-called quality stocks through an actively managed approach. This story is available exclusively to Business Insider subscribers. "At GMO, internally we also talk about intrinsic value, which is adjusting for growth and quality," Hancock said. The aerospace business manufactures and re-services airplane engines, and the continued resurgence in global demand for travel following the pandemic bodes well for the business, Hancock said. While the timing of the ETF release is not related to Grantham's call, Hancock said quality stocks are typically more defensive in a recessionary environment.
Persons: Tom Hancock, Hancock, Jeremy Grantham, Grantham Organizations: Business, Microsoft, Apple, Nvidia, Electric, GE
Actively managed exchange-traded funds are having their time in the limelight as ETF managers seek new strategies beyond passive funds. "But with active management, you can differentiate assuming the active manager is actually doing something meaningfully different than the underlying benchmark," he added. While active ETFs have been around since 2008, the popularity took off in 2019 after the SEC eased launch restrictions. So far this year, the number of active ETFs that have launched have already overtaken passive ETFs by a ratio of three to one, according to Morningstar. While it's the firm's first active ETF, GMO has run a traditional actively managed mutual fund called the GMO Quality Fund (GQETX) since 2004.
Persons: Nate Geraci, Morningstar, Franklin, It's, Tom Hancock, we've Organizations: Edge, SEC, Asset Bond, Quality
Jeremy Grantham's investment firm is taking its first steps to enter the world of exchange traded funds, debuting a new offering modeled on one of Grantham, Mayo, Van Otterloo's crown jewel mutual funds. The GMO U.S. Quality ETF (QLTY) launched last Wednesday, marking the investment firm's first ETF. The new ETF will be managed by the same team that helms GMO Quality III mutual fund ( GQETX ). The QLTY ETF should see a similar turnover rate of around 20% to what the mutual fund has, he added. Jeremy Grantham, GMO's chief investment strategist, is not directly involved in the new ETF.
Persons: Jeremy, Van, Tom Hancock, Hancock, Jeremy Grantham Organizations: Quality, helms, Morningstar, Microsoft, General Electric Locations: Grantham, Mayo
Legendary value investor Jeremy Grantham is betting on a special caliber of stocks with his firm's first active ETF: the GMO U.S. Quality ETF. "There's a lot more interest in active ETFs than there was even a few years ago," Hancock told CNBC's "ETF Edge" this week. According to GMO's website, as of November 17th, the ETF's top holdings include Microsoft , UnitedHealth and Johnson & Johnson . "These are battleship companies that are going to remain relevant and important going forward." Shares of UnitedHealth are virtually flat while Johnson & Johnson is down more than 15%.
Persons: Jeremy Grantham, Tom Hancock, Hancock, CNBC's, Johnson Organizations: Quality, Microsoft, Johnson
Value exchange-traded funds have lagged growth in 2023 due to an unusual circumstance unfolding in the market, according to two experts. As of Tuesday's close, the iShares S&P 500 Growth ETF (IVW) has gained 22.84% this year. The iShares S&P 500 Value ETF (IVE) is up 11.27% in the same period. The IVE value ETF fell 7.38% last year, while the IVW growth ETF dropped 30.08%. "If you think about this, that's a really tough pill to swallow for value investors after it appeared value was turning the corner in 2022 following years of underperformance," he added.
Persons: Tom Hancock, Bob Pisani, Nathan Geraci, Geraci, Hancock Organizations: Quality, Big Locations: CNBC's
REUTERS/Nicholas Roberts/File Photo Acquire Licensing RightsNov 13 (Reuters) - GMO LLC, the asset management firm co-founded by veteran investor Jeremy Grantham, will launch its first exchange-traded fund (ETF) on Wednesday. Holdings in GMO's quality stock-focused mutual funds include companies like Microsoft (MSFT.O), Johnson & Johnson (JNJ.N) and Apple (AAPL.O). About 22% of all inflows into ETFs this year have been to active ETFs, which represent only 7% of total ETF assets, according to Todd Sohn, an ETF analyst at Strategas. The fund will be managed by Tom Hancock, who has been running a $7.9 billion mutual fund with a similar focus, the GMO Quality III , since 2009. The GMO launch is the second steered to market by the Goldman Sachs ETF Accelerator, which offers asset managers consulting advice on each stage of the launch process.
Persons: Jeremy Grantham, Nicholas Roberts, Johnson, Todd Sohn, Tom Hancock, Goldman Sachs, Hancock, Suzanne McGee, Ira Iosebashvili, Lisa Shumaker Organizations: Pace University, REUTERS, Quality, Holdings, Microsoft, Apple, CFRA Research, Goldman, Thomson Locations: Oxford, New York
GMO launches its first ETF
  + stars: | 2023-11-13 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGMO launches its first ETFCNBC’s Bob Pisani on ‘ETF Edge’ with GMO's Tom Hancock discuss the firm's new ETF and the value vs. growth debate.
Persons: Bob Pisani, Tom Hancock
The "active" arena suddenly gets crowded
  + stars: | 2023-11-13 | by ( Bob Pisani | ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe "active" arena suddenly gets crowdedNate Geraci, The ETF Store president, and Tom Hancock, GMO head of focused equity and portfolio manager, join CNBC's Bob Pisani on 'ETF Edge' to discuss the rise in popularity of actively managed ETFs.
Persons: Nate Geraci, Tom Hancock, Bob Pisani
State of value investing in 2024
  + stars: | 2023-11-13 | by ( Bob Pisani | ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailState of value investing in 2024Nate Geraci, The ETF Store president, and Tom Hancock, GMO head of focused equity and portfolio manager, join CNBC's Bob Pisani on 'ETF Edge' to discuss the outperformance of growth over value and if the trend will continue.
Persons: Nate Geraci, Tom Hancock, Bob Pisani
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailLegendary value investor launches ETF… but it's not a value fundNate Geraci, The ETF Store president, and Tom Hancock, GMO head of focused equity and portfolio manager, join CNBC's Bob Pisani on 'ETF Edge' to discuss the launch of GMO's U.S. Quality ETF later this week.
Persons: it's, Nate Geraci, Tom Hancock, Bob Pisani Organizations: GMO's, Quality Locations: GMO's U.S
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