Bridgeway debuts blue-chip US equity ETF

Oct 19th, 2022 | By | Category: Equities

Texas-based asset manager Bridgeway Capital Management has made its ETF debut with the introduction of an actively managed US equity fund targeting blue-chip stocks.

Bridgeway debuts blue-chip US equity ETF

Blue-chips are stocks of companies with a national reputation for quality and reliability.

The EA Bridgeway Blue Chip ETF (BBLU US) has been listed on NYSE Arca with an expense ratio of 0.15%.

The fund was created by reorganizing the Bridgeway Blue Chip Fund which houses $200 million in assets and has a performance track record stretching back to August 1997.

Blue chips are stocks of companies with a national reputation for quality, reliability, and the ability to operate profitably in good and bad times.

Bridgeway classifies the eligible blue-chip universe as the 150 largest US-listed companies by total market capitalization.

The firm’s investment team utilizes a proprietary, model-driven statistical approach to security selection which was developed using academic theory and incorporates logic, data, and evidence. The ETF will typically include around 35 holdings and will strive to maintain appropriate sector diversification.

As of the end of September, nearly one-third (29.6%) of the portfolio was allocated to information technology stocks with the next largest sector exposures being communication services (13.3%), healthcare (12.6%), financials (11.2%), and consumer staples (11.0%).

Notable positions included Chevron (4.3%), Visa (4.1%), JP Morgan (4.0%), Microsoft (3.9%), and United Parcel Service (3.9%).

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