Building on the success of QLTY, GMO launches three new ETFs: QLTI, GMOV, and GMOI
BOSTON, October 29, 2024--(BUSINESS WIRE)--GMO, a global investment manager known for its long-term, valuation-oriented strategies, is excited to announce the expansion of its exchange-traded fund (ETF) offerings with the launch of three new actively managed ETFs: GMO International Quality (NYSE: QLTI), GMO U.S. Value (NYSE: GMOV), and GMO International Value (NYSE: GMOI).
GMO is committed to providing accessible investment solutions to a global investor base. These new ETFs support that commitment and build on the momentum of the GMO U.S. Quality ETF (NYSE: QLTY), which marked the firm's successful entry into the ETF market in 2023.
"Expanding our ETF lineup is a natural step forward in our mission to offer clients diverse ways to invest in innovative GMO solutions. Each of these new ETFs reflects our focus on disciplined, long-term, valuation-driven investment processes and our drive to meet growing investor demand," said Scott Hayward, Chief Executive Officer of GMO.
"GMO’s new ETFs are designed to provide investors exposure to areas of the market where we see compelling opportunity today: dislocated value stocks both in the U.S. and abroad and high-quality businesses outside the U.S.," said Ben Inker, Co-Head of Asset Allocation at GMO. "Deep value stocks in particular are historically undervalued in the U.S. and have never been cheaper in developed non-U.S. markets, dating back to the 1980s," he added.
GMO’s newest ETFs are designed to provide investors with a range of opportunities to diversify portfolios.
GMO International Quality (QLTI): Focuses on high-quality companies outside the U.S. with consistent earnings, robust balance sheets, and strong cash flow generation.
GMO U.S. Value (GMOV) and GMO International Value (GMOI): Opportunistically target U.S. and international stocks, respectively, trading at the most attractive valuations – today, deep value – with a disciplined approach to identifying mispriced opportunities.
GMO has been at the forefront of quality and valuation-driven investing for nearly 50 years, and the expansion of its ETF offerings continues the firm’s legacy of innovation with the goal of delivering superior, long-term, risk-adjusted returns for clients.
Since launching in November 2023, GMO’s first ETF, GMO U.S. Quality (QLTY), has surpassed $1 billion in assets under management, highlighting the strong interest from investors seeking tax-advantaged and operationally efficient access to long-running GMO strategies.
GMO has also filed for two additional ETFs – GMO Beyond China (BCHI) and GMO Systematic Investment Grade Credit (INVG) – that the firm intends to launch in the coming months.
The GMO ETFs were launched with the support of the Goldman Sachs ETF Accelerator, a digital platform that enables Goldman Sachs’ clients to quickly and efficiently launch, list, and manage ETFs.
About GMO
Global investment manager GMO, established in 1977, brings together focused expertise within its investment teams, industry-leading research, and client solutions and service to advance clients’ goals. Privately owned and renowned for conviction in a valuation-based, long-term investment philosophy, GMO serves sophisticated institutions, financial intermediaries, and families, and managed $70 billion as of September 30, 2024. The firm is headquartered in Boston, with offices in London, Sydney, Amsterdam, Singapore, and Tokyo (representative office). For more information, visit www.gmo.com.
An investor should carefully consider the fund’s investment objectives, risks, charges, and expenses before investing. This and other important information can be found in the fund’s prospectus. To obtain a prospectus please visit www.gmo.com. Read the prospectus carefully before investing.
Risks associated with investing in QLTI may include: (1) Market Risk – Equities: The market price of equities may decline due to factors affecting the issuer, its industries, or the economy and equity markets generally. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares. (2) Management and Operational Risk: The risk that GMO's investment techniques will fail to produce desired results, including annualized returns and annualized volatility. (3) Non-U.S. Investment Risk: The market prices of many non-U.S. securities (particularly of companies tied economically to emerging countries) fluctuate more than those of U.S. securities. Many non-U.S. markets (particularly emerging markets) are less stable, smaller, less liquid, and less regulated than U.S. markets, and the cost of trading in those markets often is higher than it is in U.S. markets. (4) New Fund Risk: New funds have limited operating histories for investors to evaluate, and new and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. For a more complete discussion of these risks and others, please consult the Fund's Prospectus.
Risks associated with investing in GMOV may include: (1) Market Risk – Equities: The market price of equities may decline due to factors affecting the issuer, its industries, or the economy and equity markets generally. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares. (2) Management and Operational Risk: The risk that GMO's investment techniques will fail to produce desired results, including annualized returns and annualized volatility. (3) Focused Investment Risk: The Fund invests its assets in the securities of a limited number of issuers, and a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund invested in the securities of a larger number of issuers. (4) New Fund Risk: New funds have limited operating histories for investors to evaluate, and new and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. For a more complete discussion of these risks and others, please consult the Fund's Prospectus.
Risks associated with investing in GMOI may include: (1) Market Risk – Equities: The market price of equities may decline due to factors affecting the issuer, its industries, or the economy and equity markets generally. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares. (2) Management and Operational Risk: The risk that GMO's investment techniques will fail to produce desired results, including annualized returns and annualized volatility. (3) Non-U.S. Investment Risk: The market prices of many non-U.S. securities (particularly of companies tied economically to emerging countries) fluctuate more than those of U.S. securities. Many non-U.S. markets (particularly emerging markets) are less stable, smaller, less liquid, and less regulated than U.S. markets, and the cost of trading in those markets often is higher than it is in U.S. markets. (4) New Fund Risk: New funds have limited operating histories for investors to evaluate, and new and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. For a more complete discussion of these risks and others, please consult the Fund's Prospectus.
The GMO ETFs are distributed in the United States by Foreside Fund Services LLC. GMO and Foreside Fund Services LLC are not affiliated.
