The actively managed ETF selects stocks “using Validea Capital’s proprietary investment system, which is based on our interpretation of the published investment strategies of Wall Street legends. In total, Validea Capital runs 17 different models and the Validea Market Legends ETF is comprised of 100 stocks using 10 distinct ‘guru’-based models that utilize a wide variety of investment styles, including value, growth, momentum and income,” according to the firm. [Apple Joins Legends ETF]
“Gilead scores highly based on multiple investment criteria, including favorable P/E/G ratio (a ratio that Lynch used to assess the valuation of a stock relative to its growth rate), strong earnings growth and an acceptable debt-to-equity ratio. The stock also receives high marks from additional growth and momentum strategies run by Validea Capital, which Carbonneau says is a bonus because stocks with high scores from multiple strategies indicates strong fundamentals through the lens of different approaches that all analyze many important facets of a company’s overall financial health and the attractiveness of its stock. According to Carbonneau, VALX’s 10 unique models that make up the fund utilize both value- and growth-based styles and the combination of these strategies seeks to reduce variability of returns over time, an important factor, he believes, that will contribute to the potential in maximizing long term investor returns,” according to Validea. [New ETF Tracks Legendary Investors, Strategies]
Validea Market Legends ETF
