Natixis Investment Managers’ high-conviction U.S. stock ETF has reached a notable milestone.
The Natixis Vaughan Nelson Select ETF (VNSE ) has amassed a notable track record as the active ETF crosses its four-year anniversary on September 17.
The actively managed ETF seeks long-term capital appreciation by investing in stocks of companies with undervalued assets, earnings growth, or dividend yield.
VNSE has proven itself a compelling long-term strategy option. The high-conviction U.S. stock ETF has climbed 66.3% since its inception on September 17, 2020, through September 10, 2024. The ETF has gained 10.8% in the past year.
Under the Hood of Natixis’ High-Conviction U.S. ETF
VNSE utilizes an opportunistic approach toward building a factor-diversified multi-cap portfolio. Vaughan Nelson looks to identify companies with undervalued earnings growth, assets, and dividend yield. By focusing on underrated stock picks, VNSE opens up more potential for capital appreciation.
In performing fundamental research, the investment process focuses on company financials, which include meetings with management and industry contacts. VNSE’s investment team also considers management’s trading activity within a company’s stock and looks to develop an investment thesis and financial milestone that may drive price appreciation.
According to the fund’s website, Vaughan Nelson seeks to take advantage of temporary information and marketplace inefficiencies across the market capitalization range. This helps it find investment opportunities in companies at valuations materially below their long-term intrinsic value.
VNSE comprises 27 securities as of September 10 and will typically hold between 20 and 40 names. The fund’s top five holdings include Microsoft (MSFT), Nvidia (NVDA), Monolithic Power Systems (MPS), Amazon.com (AMZN), and Alphabet (GOOGL).
The fund’s investment universe includes small, medium, and large companies. According to ETF Database, nearly 83% of the fund by weight is in large caps.
VNSE charges 80 basis points, a competitive price for experienced active management. Notably, the fund’s two portfolio managers have 60 years of combined investment experience.
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