GMO Expands ETF Lineup With New Value & Quality Funds

“Expanding our ETF lineup is a natural step forward in our mission to offer clients diverse ways to invest in innovative GMO solutions. Each of these new ETFs reflects our focus on disciplined, long-term, valuation-driven investment processes and our drive to meet growing investor demand,” noted Scott Hayward, GMO’s CEO

With a net expense ratio of 0.60%, QLTI represents an international ETF expansion of GMO’s established quality strategy. The fund looks for companies outside the U.S. that have strong balance sheets and cash flow, with consistent earnings.

Expanding to international equities can make a good deal of sense for a long-term portfolio strategy. There has been recent overconcentration risks with the Magnificent Seven. So it can pay off to broaden one’s equity exposure outside the U.S. 

Meanwhile, GMOV and GMOI offer GMO’s take on a value strategy. Both funds scour the equity markets to opportunistically pick companies that represent deep value opportunities. 

Focusing on domestic markets, GMOV has a net expense ratio of 0.50%. As an international alternative, GMOI’s expense ratio is currently 0.60%. 

An active portfolio team can be an especially valuable addition to a value-focused portfolio. Given the increased flexibility of active ETFs, investors can tap into GMOV and GMOI to seek seek companies the market may be missing out on.

“After the successful launch of QLTY a year ago, it is great to see GMO further expand its lineup,” said Todd Rosenbluth, head of research at VettaFi. “The addition of two international equity ETFs will help advisors seeking to meet client diversification goals.”

As GMO’s first ETF, the GMO U.S. Quality ETF (QLTY B+) launched back on Nov. 13, 2023. Within less than a year, QLTY has accumulated over $1.2 billion in assets under management. 

For more information, please visit VettaFi.com | ETF Trends.