Exchange Traded Concepts announced the launch of the Bancreek U.S. Large Cap ETF (NYSE Arca: BCUS). The fund began trading on the New York Stock Exchange Thursday.
BCUS is an actively managed ETF that seeks long-term capital appreciation. The fund’s managers invest in equity securities of companies they think exhibit characteristics of structurally advantaged business models.
The fund uses a rigorous, quantitative framework that leverages big data and high-performance computing. BCUS uses this framework to evaluate companies that it believes have the potential to compound capital over time.
Andrew Skatoff, founder and CEO of Bancreek Capital Advisors, said that the firm takes “a long-term approach to investing.” He added: “There are many wonderful companies that have compounded capital for their shareholders over extended periods of time.”
“These companies tend to have attributes like pricing power, product differentiation, executional discipline, and robust, time-tested growth strategies,” Skatoff said. “We believe these companies have structurally advantaged business models. It’s our view that investing in a collection of structurally advantaged businesses is the key to successful long-term investing.”
As of December 21, the fund had 25 holdings. BCUS charges 70 basis points.
The Uptick in Active ETFs
Active ETFs have been gaining in popularity this year. As VettaFi’s Head of Research Todd Rosenbluth noted, “Demand for actively managed equity ETFs has grown in 2023.”
Just this week, we’ve seen the launch of one active fund from John Hancock, two from PlanRock, and four from PGIM on the NYSE. And research from Morgan Stanley noted that in the first half of 2023, active ETFs grew at a rate of 14%. By comparison, passive ETFs saw a growth rate of 3% during the same period.
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