OPTZ: An Optimistic All-Cap ETF With A Simple But Unique Strategy
Source: SeekingAlpha
2025-04-17 22:36:53 ET
Summary
- Optimize Strategy Index ETF on just four metrics. Its ER is 0.50% and the ETF has $143 million in AUM.
- Its GARP features are excellent. OPTZ trades at just 14.77x forward earnings but offers nearly twice the estimated earnings growth of FNDB, Schwab's fundamentals-based all-cap factor fund.
- Quality is slightly lacking, which I attributed to assigning greater weight to less-profitable small-cap stocks. Through it weighting scheme choice, Optimize Financial seems biased in favor of tech stocks.
- Consistent with the firm's optimistic outlook, OPTZ takes on more risk than usual. Its 1.27 five-year beta is high, and an 11+ year Index backtest reveals larger drawdown potential.
- OPTZ is a simple but unique all-cap fund worth watching, especially if you're a GARP investor. However, its volatility and quality features warrant some caution, so the most appropriate rating is a "hold."
Investment Thesis
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OPTZ: An Optimistic All-Cap ETF With A Simple But Unique Strategy
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