Grantham’s GMO Recordsdata for Its First ETF


Grantham Mayo Van Otterloo is planning to interrupt floor within the $7.4 trillion exchange-traded fund trade.

The $59 billion Boston-based funding firm co-founded by Jeremy Grantham filed an utility with U.S. regulators for its first ETF, dubbed the GMO U.S. High quality ETF, on Monday.

The actively-managed fund would commerce below the ticker QLTY and put money into shares that GMO “believes to be of top quality,” the submitting particulars.

GMO’s push into ETFs is pushed by demand from the middleman and wealth administration area, in keeping with the agency.

GMO joins a rising record of asset managers launching ETFs lately, because the automobile continues to soak up money whereas cash drains from mutual funds.

However with $7.4 trillion in property unfold throughout greater than 3,200 US-listed ETFs, GMO probably faces an uphill battle in attracting consideration in an already saturated market.

To not point out, there’s round $58 billion sitting in so-called good beta ETFs that observe the standard issue, Bloomberg Intelligence information reveals.

“We’re clearly seeing each cash supervisor on the market notice they want a technique in an ETF wrapper,” mentioned Todd Sohn, ETF strategist at Strategas. “Their success can be outlined by their efficiency means in addition to if they will succeed within the advertising and marketing facet. That’s, why allocate to their actively managed product versus an ordinary smart-beta technique?”


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