On Wednesday, GCI Investors, an independent asset manager, announced the launch of its first U.S.-listed ETF, the Genuine Investors ETF (NYSE: GCIG). This active fund provides exposure to a long-term strategy of high-conviction investments powered by in-house valuation and quality analysis.
GCI’s move into the ETF space allows access to the firm’s previously private strategy of “Genuine Investing.” This investment approach entails constructing a portfolio of high-quality businesses in certain industries that are structurally more attractive than others. “Genuine Investing” is differentiated and unburdened by common industry constraints such as short-duration time horizons, index-tracking, and the institutional imperative to sell newer products constantly.
“At GCI, everything for us comes back to investing in businesses, not trading stocks,” said Guy Davis, CFA, managing director, and portfolio manager. “We think in the short term, there are often significant discrepancies between real business values and their stock prices. Those divergences create significant opportunities for us. We approach investing like business owners, and we use the market for opportunity, rather than relying on it for information about actual business value.”
Engineered to serve as a core holding within the equity portion of an investment portfolio, this active fund is designed as an all-weather strategy that isn’t guided by major benchmarks or market fads. The fund is entirely agnostic of traditional classifications and labels such as “value” and “growth” or specific themes. Instead, through its “Genuine Investing” approach, GCIG is purely focused on seeking to generate consistent long-term, risk-adjusted returns for shareholders.
Because equities are distinguished as the best-performing asset class over time, GCIG is fully-invested and seeks to maximize and maintain exposure to great companies throughout market cycles. GCIG also differentiates itself among active equity ETFs with its high active share.
The fund holds 23 portfolio companies. The fund’s gross expense ratio is 1.65%. The net expense ratio, after fee waivers contractual through February 29, 2024, is 1.00%.
For more information, please visit genuineinvestorsetf.com.
For more news, information, and strategy, visit ETF Trends.
GCI was founded on the principle that investing in high-quality companies at attractive prices is the best strategy to achieve long-run, risk-adjusted returns. Their strategy represents a concentrated, fundamentals focused approach to investing. For GCI, everything comes back to making a genuine investment in a company. As such, they take a business-owners approach to understanding and analyzing companies. Their decisions are made as allocators of capital, not as traders of stocks. They continually search for the most attractive investment opportunities at any point in time, across all market caps and various investment styles.