Gotham launches new US equity value ETF

Jun 10th, 2022 | By | Category: Equities

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New York-based Gotham Asset Management has unveiled its second actively managed ETF offering value-focused exposure to US equities.

Joel Greenblatt, founder and co-CIO, Gotham Asset Management

Joel Greenblatt, founder and co-CIO, Gotham Asset Management.

Listed on NYSE Arca, the Gotham 1000 Value ETF (GVLU US) seeks to outperform the Russell 1000 Index by selecting between 400 and 600 securities from an initial universe of the largest 1,400 US-listed stocks based on Gotham’s proprietary factor research.

Gotham is an equity management firm offering both long-only and long/short investment strategies to institutional clients. The firm is headed up by founder and co-CIO Joel Greenblatt who also moonlights as an adjunct professor at Columbia Business School.

Gotham’s factor framework consists of a bottom-up analysis that aims to identify cheaply priced stocks, based on measures of both absolute and relative value, while emphasizing strong fundamentals such as recurring earnings, cash flows, capital efficiency, and capital structure.

Companies that do not conform to Gotham’s valuation methodology, or those adjudged to have questionable financial reporting, will be excluded.

The fund assigns the largest weights to stocks that are priced at the largest discount to Gotham’s assessment of value while a risk management overlay limits concentration in any single company, industry, or sector.

Gotham’s first ETF, the Gotham Enhanced 500 ETF (GSPY US), focuses on the US large-cap segment by investing in all stocks within the S&P 500 while weighting its constituents according to the firm’s value-centered framework. The fund has accumulated $250 million in assets since debuting in January 2021.

Both of Gotham’s ETFs come with expense ratios of 0.50%.

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