Tennessee-based investment manager Ironhorse Capital Management has unveiled its dedicated ETF platform, Conductor ETFs, with the introduction of an actively managed global equity strategy targeting value-oriented stocks.

The ETF seeks out value stocks globally that also have favourable technical indicators.

The Conductor Global Equity Value ETF (CGV US) has been listed on NYSE Arca with an expense ratio of 1.28%.

Investment approach

Ironhorse employs a fundamentals-based quantitative factor model to identify investments that have been undervalued by the market relative to metrics such as cash flow generation, profitability, and balance sheet strength.

Once potential opportunities are identified, Ironhorse employs a technical model to measure these securities’ price momentum, pricing behavior, and chart patterns.

Only securities with both favourable fundamentals and technical attributes will be selected for the ETF.

The fund will have at least 40% of its assets dedicated to stocks listed outside of the US. All chosen companies located outside of the US will be purchased in the foreign country, on the local exchange, and in the local currency. No currency hedging is employed by the ETF.

The ETF has the flexibility to invest across the market capitalization spectrum; however, Ironhorse notes that the strategy is expected to focus primarily on equities within the mid and small-cap space.

During periods of rising economic uncertainty based on Ironhorse’s proprietary macro analysis, the fund may hedge up to 50% of its equities exposure by shifting assets to cash or utilizing derivatives such as short positions on mainstream equity indices.