On Monday, Eagle Capital Management entered the ETF space for the first time with the Eagle Capital Select Equity ETF (NYSE Arca: EAGL).
EAGL has a net expense ratio of 0.80%. The fund is actively managed and prioritizes investment returns higher than the U.S. equity market.
“Eagle always puts clients first. We are launching this ETF because of strong demand from our clients and their advisors who recognize the benefits of this vehicle, including its simplicity, liquidity, potential for greater tax efficiency, and ease of use in asset allocation. We welcome the opportunity to participate in the growth of active ETFs and their increasing use by sophisticated investors, their advisors, and asset allocators,” Eagle Capital Management CEO Michael Falcon noted.
The fund primarily invests in equity securities, shares in companies that invest in equity securities, and depositary receipts, the fund prospectus noted. The fund’s investment strategy focuses on long-term returns, using fundamental research to seek out undervalued securities for long-term gains. Additionally, fund managers evaluate downside protection for stocks based on their ability to maintain value through periods of financial stress.
Portfolio size for the fund will generally sit between 15-35 securities. The prospectus added that fund managers will usually select large-cap companies for investment, though room remains to invest in smaller stocks.
Seasoned Experience
Eagle Capital Management noted that the fund’s investment team has an average of 23 years of experience. The issuer’s Managing Chief Investment Officer, Alec Henry, is the fund’s portfolio manager.
“Our North Star is buying undervalued companies with unrecognized long-term growth potential. Our aim is to protect, preserve, and grow our clients’ capital. Eagle Capital’s focus on the long-term differentiates us from most other managers in an increasingly short-term-oriented investment landscape. We are fortunate to have enduring clients who share our vision and have conviction in our capabilities,” he noted.
The fund was launched in partnership with the Goldman Sachs ETF Accelerator. Eagle Capital Management was founded in 1988 and currently has $26 billion in assets under management.
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