BOSTON–(BUSINESS WIRE)–GMO, a global investment manager, today launched its first exchange-traded fund, the GMO U.S. Quality ETF (NYSE: QLTY).
QLTY leverages GMO’s more than 40 years of quality investing experience to invest in U.S. high-quality stocks, while offering the additional benefits of the ETF structure, including tax efficiency, daily transparency, and continuous liquidity.
“GMO has always been committed to offering innovative investment solutions in the implementation structures that best address the needs of our clients. The launch of our first ETF and potential future ETFs are a natural evolution of that commitment, meeting demand from the intermediary and wealth management channels,” said Scott Hayward, Chief Executive Officer of GMO.
“Quality has a claim on being the most mispriced characteristic in the market over the last 100 years. Since we began researching quality in the 1980s, GMO has focused on finding companies with a consistent and enduring ability to deliver high returns on their investments,” said Jeremy Grantham, Co-Founder and Long-Term Investment Strategist at GMO.
“Investing in Quality businesses has won over time with lower risk. With our focus on valuation, we believe GMO’s Quality strategy is truly for all markets, able to find great opportunities at attractive prices to participate in the upside of growth periods, while also mitigating risk in weaker environments. Today, as investors have concerns about issues like interest rates, inflation, and the threat of a recession, we believe Quality can be a particularly worthwhile, resilient investment,” said Tom Hancock, Head of GMO Focused Equity and Portfolio Manager of QLTY.
The launch of QLTY and GMO’s expansion into ETFs continues the firm’s mission to solve investment challenges in total alignment with clients’ needs. Launching QLTY offers an implementation structure that aligns with investors seeking tax-advantaged and operationally efficient access to long-running, institutional-grade GMO strategies, which the firm will continue to deliver with the same focus and conviction over the long term.
GMO is a pioneer of quality investing, and the GMO U.S. Quality ETF builds on the foundation of the $14 billion (assets under management) GMO Quality Strategy, which GMO has managed since 2004.
QLTY was launched in partnership with the new Goldman Sachs ETF Accelerator, a digital platform that enables Goldman Sachs’ clients to quickly and efficiently launch, list, and manage ETFs.
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 $58 billion as of September 30, 2023. The firm is headquartered in Boston, with offices in London, Sydney, Amsterdam, San Francisco, Singapore, and Tokyo (representative office).
Risks associated with investing in the Fund may include: (1) Market Risk – Equities: The market price of an equity may decline due to factors affecting the issuer or its industry 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. (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. For a more complete discussion of these risks and others, please consult the Fund’s prospectus.
An investor should 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. A copy of the prospectus can be found here. Please read the prospectus carefully before investing.
The GMO ETFs are distributed in the United States by Foreside Fund Services LLC. GMO and Foreside Fund Services LLC are not affiliated.
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