Actively managed ETFs have yet to gain the same type of traction as index-based ETFs but that hasn’t stopped product providers from launching new funds.
The Grail American Beacon Large Cap Value ETF (GVT) is the latest active ETF to debut. The fund is supervised by a consortium of managers and it invests in large-company stocks. The top three holdings inside GVT are JP Morgan Chase & Co. (1.56 percent), Chevron (1.44 percent), and ConocoPhillips (1.43 percent).
The large-cap stocks within GVT’s portfolio generally reflect below-average P/E ratios, below-average price-to-book value ratios and above-average dividend yields. The fund’s management team compares these financial metrics to stocks within the Russell 1000 Index, a popular measure of large-company stocks.