Global Fundamental Value ETF

The strategy uses sales, cash flow, book value and dividends to determine how much of each company the portfolio holds, linking portfolio weights to the size of the underlying businesses rather than share prices. This approach sells shares that have become expensive relative to their fundamentals and buys those that have become cheaper, aiming to deliver superior long-term performance compared with market-cap weighted indices.

Traditional value strategies often focus on stocks considered inexpensive based on conventional valuation metrics. GVAL takes a broader approach, holding up to 750 of the largest companies across developed markets and spanning all sectors. This provides broad, diversified global equity exposure with a value tilt, rather than limiting the portfolio only to the cheapest stocks.

GVAL can be considered for use alongside a market-cap weighted portfolio or as a targeted value factor allocation. Its fundamental weighting approach provides a return profile that differs from traditional market-cap weighted indices and other investment styles, making it a complementary allocation within a broader global equity portfolio.