Segall Bryant & Hamill Asset Management has launched the actively managed Segall Bryant & Hamill Select Equity ETF (NYSE Arca: USSE). The fund targets companies believed to have superior growth potential that are trading at a discount to their intrinsic value.
Segall Bryant & Hamill’s director of all-cap strategies Suresh Rajagopal will manage the fund.
USSE invests in stocks seen as having strong management teams, broad resources, and a competitive market position. It also seeks companies that have historically generated, or are positioned to generate, strong return on invested capital.
Segall Bryant & Hamill uses a combination of external and proprietary research to select stocks to include in the fund. The fund’s manager uses quantitative analysis, fundamental analysis, and experienced judgment to select stocks. Its management team also integrates a company’s environmental, social, and corporate governance (ESG) practices within its investment processes.
The fund’s prospectus details the conditions under which one can sell holdings. For example, if their conditions have changed and prospects are no longer attractive. Or, if the stock price has achieved the team’s valuation target. The team will also sell the stocks if and when the team identifies better relative investment opportunities.
“Actively managed ETFs have grown in popularity over the past few years, especially as investors try to navigate a challenging market environment,” said VettaFi’s associate director of research Roxanna Islam. “While ETFs were traditionally known for passive strategies, active ETFs allow investors to trade more complex strategies with ease.”
USSE has an expense ratio of 0.65%.
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