Lastly, the firm singles out the cheapest and highest quality value stocks left over.
“We fundamentally believe in a classic value investment approach, which means we focus on the common stock of firms with low prices relative to fundamentals,” according to ValueShares.
QVAL currently has a heavy tilt toward consumer cyclical stocks at 25.2% of the portfolio, followed by healthcare 20.4%, tech 15.4% and basic materials 12.4%. Top holdings include Edwards Lifesciences (NYSE: EW) 2.9%, Apollo Education Group (NasdaqGS: APOL) 2.7%, Cisco (NasdaqGS: CSCO) 2.7%, Magna International (NYSE: MGA) 2.7% and Apple (NasdaqGS: AAPL) 2.7%.
The ETF was launched October 22, has $14.6 million in assets and has a 0.79% expense ratio. [ValueShares Makes ETF Debut With Quantitative Value ETF]
For more information on active strategies, visit our actively managed ETFs category.
Max Chen contributed to this article.