Tweedy, Browne Makes ETF Debut with Active Value Fund

COPY seeks to offer capital growth with a long-term time horizon. This actively managed fund has a net expense ratio of 0.80%. 

For COPY, the lion’s share of net assets are allocated to equities of companies in or outside the United States. These equities can include common stock, preferred stock, and depositary receipts. 

When it comes to choosing companies to invest in, Tweedy, Browne considers a number of different factors. To start, the fund looks for stocks that appear undervalued at the time.

Additionally, COPY seeks out companies in which the company is either offering share buybacks or company insiders are purchasing its stocks. COPY’s investment process is both quantitative and decision-rule based, and is applied across a wide variety of market sectors. 

COPY applies this strategy across a wide variety of market caps, industries, and countries. The fund seeks to keep individual security positions at no larger than 2% of the fund’s overall assets. This preserves a diversified portfolio.

Part of the benefits of actively managed ETFs are their defensive flexibility, and COPY is no different. Should market, political, or macro conditions get dicey, the fund may opt to take a defensive stance and pivot to short-term debt and money markets.  

“Entering the ETF space is a natural extension of our business and affords taxpaying investors access to our actively managed strategies within a tax-efficient ETF structure. We are attempting to address the growing demand for value-oriented investment options in these innovative investment vehicles,” noted Jason Minard, managing director and head of client services at Tweedy, Browne.

As an added perk, COPY marks the first time investors can access Tweedy, Browne’s investment expertise within an ETF wrapper. Founded over a century ago, Tweedy, Browne has a proven track record for piloting value-focused strategies. 

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