Kovitz Core Equity ETF (EQTY)

Overview

The Kovitz Core Equity ETF (EQTY) is designed to provide investors with long-term capital appreciation by investing in a diversified portfolio of primarily U.S. equities. It focuses on well-established companies with strong fundamentals and aims to outperform the Russell 3000 Index. The ETF's strategy is to select securities and weight them based on proprietary fundamental analysis. It is suitable for investors seeking a core equity holding with a focus on value and quality.

Reputation and Reliability

Kovitz Investment Group is a well-regarded investment management firm with a history of managing assets for institutions and high-net-worth individuals.

Management Expertise

The management team comprises seasoned professionals with expertise in fundamental equity analysis and portfolio management.

Goal

To provide long-term capital appreciation by investing primarily in U.S. equities.

Investment Approach and Strategy

Strategy: EQTY does not track a specific index directly but aims to outperform the Russell 3000 Index through a proprietary fundamental analysis-based security selection process.

Composition Primarily composed of U.S. stocks, weighted based on Kovitz's fundamental analysis. The fund may also hold a small portion of cash or cash equivalents.

Market Share: Data not readily available to provide an accurate market share figure.

Total Net Assets (AUM): 48161586

Key Competitors

• SPDR S&P 500 ETF Trust (SPY)
• iShares Core S&P 500 ETF (IVV)
• Vanguard Total Stock Market ETF (VTI)

Competitive Landscape

The ETF industry is highly competitive, dominated by large index funds such as SPY, IVV, and VTI. EQTY differentiates itself through its active management strategy and focus on fundamental analysis, potentially leading to outperformance but also exposing it to management risk. Its AUM is significantly smaller than its competitors, hindering its ability to benefit from economies of scale. The advantages of EQTY compared to its competitors include its active management style. Disadvantages of EQTY include lower AUM and possibly less liquidity.

Historical Performance: Historical performance data is available from ETF providers. Refer to their sources for detailed return information.

Benchmark Comparison: Benchmark comparison data can be found on financial websites like Bloomberg, Yahoo Finance, etc.

Expense Ratio: 0.5

Average Trading Volume

Average daily trading volume is moderate, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting adequate liquidity.

Market Environment Factors

Economic growth, interest rate policies, inflation, and geopolitical events can affect the ETF's performance, reflecting broader market conditions.

Growth Trajectory

Growth depends on consistent outperformance, attracting assets, and maintaining its fundamental investment strategy.

Competitive Edge

EQTY's competitive edge lies in its active management and fundamental analysis-driven security selection. This approach seeks to identify undervalued companies with strong financials, potentially leading to superior risk-adjusted returns. Kovitz Investment Group's experienced management team and disciplined investment process further enhance its advantage. Its concentrated portfolio of high-conviction ideas can offer unique exposures not found in passively managed ETFs. However, active management also introduces management risk and can result in periods of underperformance.

Volatility

Volatility depends on the market conditions and specific holdings within the portfolio. Check the ETF's historical volatility and beta to assess risk.

Market Risk

Market risk stems from potential declines in equity valuations due to economic downturns, industry-specific headwinds, or unforeseen events affecting portfolio company earnings.

Ideal Investor Profile

Investors seeking long-term capital appreciation with a willingness to accept moderate to high risk and who believe in active management.

Market Risk

Suitable for long-term investors who are comfortable with the potential for short-term volatility and who are seeking alpha generation.

Kovitz Core Equity ETF (EQTY) is an actively managed ETF aiming for long-term capital appreciation by investing in U.S. equities through fundamental analysis. It seeks to outperform the Russell 3000 Index but has a higher expense ratio than passive ETFs. Its success depends on the management team's ability to select and weight securities effectively. EQTY is suitable for investors seeking active management and willing to accept associated risks, it is not suitable for passive index followers.

Data Sources:

• etf.com
• Bloomberg
• Morningstar
• Company Filings

Disclaimers:

Data and analysis provided are for informational purposes only and should not be considered investment advice. Consult with a financial advisor before making investment decisions. All investments involve risks, including the potential loss of principal.