A new exchange traded fund (ETF) launched Tuesday on the New York Stock Exchange that identifies and offers exposure to strong brands with unrealized value.
The launch of Brand Value ETF (NYSE: BVAL) comes from Exponential ETFs and Brandometry, which is designed to outperform the broader market by identifying companies with brands whose latent value has not yet been realized by their stock price by tracking the BrandTransact 50 Index.
Exponential ETFs CEO Phil Bak said he believes intangible assets represent the next frontier in stock valuation.
“The Brand Value ETF captures and capitalizes on the work of Brandometry to quantify the brand value of publicly traded companies,” Bak said. “We created Exponential ETFs to give innovative asset managers access to the world class ETF product management team to bring their products to market thoughtfully and efficiently, which is exemplified in our partnership with Brandometry.”
The BrandTransact 50 Index (BTW50), Powered by Wilshire℠, represents a primarily large-cap portfolio that provides the benefits of intelligent security selection in a passive rules-based format.
The index equally weights the top 50 companies within the Wilshire 5000 Total Market Index™ that exhibit a discount of brand and intangible asset value to market cap.
In short, this index seeks to identify companies with unrealized brand value that have high potential for margin expansion.
The BrandTransact 50® Index is underpinned by brand performance data from Tenet Partners, a co-developer of the index. Exponential ETFs, a wholly owned platform of ACSI Funds, is an ETF issuer that partners with select asset managers to bring innovative investment approaches to market through its world class ETF management platform.
The Brand Value ETF follows the 2016 launch of the American Customer Satisfaction Core Alpha ETF (BATS: ACSI), a first-of-its-kind product that utilizes a proprietary methodology to invest in stocks based on the individual companies’ customer satisfaction scores.
For more information on new fund products, visit our new ETFs category.