Grail Advisors has launched an actively managed ETF on NYSE Arca, representing its first product ...
Grail Advisors has launched an actively managed ETF on NYSE Arca, representing its first product listing on the exchange platform.
The Grail American Beacon Large Cap Value ETF is the first ETF to use traditional active management, and allows portfolio managers unrestricted trading.
Grail Advisors claim that expenses for the ETF will be significantly less than any similarly managed mutual fund, with a maximum expense of 0.79%, which is 41% lower than the Morningstar large-cap value universe average.
The fund's investment objective is long-term capital appreciation and current income. At least 80% of the ETF's assets are invested in equity securities of US companies with large market capitalisation.
Grail Advisors will serve as the fund's manager, while Fort Worth will sub-advise the fund. The fund's assets will be allocated among three investment managers, Brandywine Global Investment Management, Hotchkis and Wiley Capital Management and Metropolitan West Capital Management.
The ETF marks the first in a series of products in the pipeline by Grail Advisors. A second product - the Grail American Beacon International Equity ETF - is intended to begin trading later this year, and will be the first ETF in the international equity space to incorporate traditional active management.
The firm adds it is in discussions with a number of leading financial institutions and asset managers and is aiming to launch a range of customised, actively managed ETFs, including single-manager funds with daily disclosure on all holdings.
Grail Advisors CEO William M. Thomas comments: "We've married all the benefits of an ETF structure - lower costs, tax efficiency, transparency of holdings, and intra-day trading - with actively managed strategies from a leading asset manager."
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