Who would’ve thought to package the value-oriented investment philosophy of the famed Benjamin Graham into an index based financial product?
Never short on ideas, Wall Street has invented just such a thing.
In August, Deutsche Bank launched the ELEMENTS exchange-traded notes (ETNs) linked to what they call, “Benjamin Graham Intelligent Value Indices.”
We can only imagine what’s next.
A Warren Buffett ETF or ETN?
Don’t laugh. As you read, enterprising marketers are probably negotiating or attempting to negotiate with Buffett to license the rights to his name. If Wall Streeters can’t make billions aping Buffett’s investment prowess, the next best thing is to try making it big by selling financial products with his face on them. And it’s not as far-fetched of an idea as you may think. Who would’ve thought Paul Newman’s mug would appear on a salad dressing bottle?
The Deutsche Bank ETNs are the first to offer investors exposure to indexes based on the value-oriented investment philosophy of Benjamin Graham.
The new ETNs will be listed on the NYSE Arca, as follows:o Benjamin Graham Large Cap Value ELEMENTS (BVL)o Benjamin Graham Small Cap Value ELEMENTS (BSC)o Benjamin Graham Total Market Value ELEMENTS (BVT)
Value investing is an investment strategy that aims to identify undervalued stocks. It was popularized by Graham in his book called Security Analysis, published in 1934 with David Dodd. (See “The Investment Classics” on p.68.)
Graham was a Columbia University professor and economist. Graham’s work influenced an entire generation of investors, including the heralded Warren Buffett.