While Benjamin Graham’s deep value strategy for selecting stocks lives on, exchange-traded notes (ETNs) that attempted to mimic him won’t.
Deutsche Bank repurchased three ELEMENTS ETNs linked to the Benjamin Graham indexes, giving investors a final cash payment on August 26.
The ETNs are:
• ELEMENTS Benjamin Graham Total Market Value Index-Total Return ETN (BVT)
• ELEMENTS Benjamin Graham Large Cap Value Index-Total Return ETN (BVL)
• ELEMENTS Benjamin Graham Small Cap Value Index-Total Return ETN (BSC)
Despite respectable performance over the past three years, the Ben Graham notes remained obscure throughout their existence and never attracted significant investment assets. As of mid-year 2011, the combined ETNs had less than $5 million in total assets. The notes were originally launched in August 2008.
Deutsche Bank manages 30 other U.S. listed ETNs with around $1.27 billion in assets.