New Line of ETNs Pay Homage to Benjamin Graham | ETF Trends

Benjamin Graham, the forefather of value investing, is the inspiration for a few exchange traded notes (ETNs) based on his beliefs. The ETNs will seek to track companies with strong, liquid balance sheets, and must trade at a discount to the implied intrinsic value, says the provider, Deutsche Bank.

John Spence for MarketWatch explains that Benjamin Graham was a legendary investor who co-authored a famous textbook “Security Analysis” and wrote “The Intelligent Investor.” His best-known disciple is Warren Buffett, who has called “The Intelligent Investor” the best book about investing every written.

A major theme with Graham was telling the difference between investing and speculation. Graham passed away in 1976, but his legacy in investing still speaks.

The ETNs use seven major factors to identify value stocks: earnings quality, valuation, forward price-to-earnings ratio, dividend yield, profitability, debt and measurements relative to industry peers.

HydePark of Nuveen Investments are the creators of the Benjamin Graham Intelligent Value Indexes. Deutsche Bank is the provider of these three new ETNs:

  • Benjamin Graham Large Cap Value Elements (BVL)
  • Benjamin Graham Total Market Value Elements (BVT)
  • Benjamin Graham Small Cap Market Elements (BSC)

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.