2024-07-17 18:20:01 ET
Summary
- BUSA is a relatively new actively managed large-cap value ETF with $150 million in assets and a 0.60% expense ratio.
- Selecting stocks based on the principles of Benjamin Graham and David Dodd, BUSA's Investment Committee has designed a portfolio with a forward P/E that's incredibly attractive versus its category peers.
- However, on a sector-adjusted basis, BUSA's value features aren't much better than low-cost index funds like IWD, SPYV, and VTV. BUSA also makes diversification, quality, and sentiment sacrifices.
- BUSA only launched in October 2023, so it's difficult to say how its focused strategy might play out over the long run. However, based on today's composition, I don't see a reason to own it.
Investment Thesis
Read the full article on Seeking Alpha
For further details see:
BUSA: New Actively Managed Large-Cap Value ETF Not Worth The Cost