GMO’s New ETFs Tap Into Deep Value and Quality Opportunities Across Global Markets

How These ETFs Work

GMO recently expanded its suite of actively managed exchange-traded funds (ETFs) with three new options targeting undervalued stocks and high-quality companies in both U.S. and international markets. These new ETFs – the GMO International Quality ETF

, GMO U.S. Value ETF

GMOV

-0.47%

, and GMO International Value ETF

GMOI

-0.89%

– are built on GMO’s commitment to a disciplined, valuation-focused investment approach. The goal for each fund is to generate total returns through careful selection of stocks that meet each fund's specific objectives: QLTI focuses on high-quality, non-U.S. companies with strong financials, while GMOV and GMOI are dedicated to U.S. and international value stocks, respectively, chosen for their discounted valuations.

Exposure

Each of GMO’s new ETFs provides investors with unique exposure to different market segments. The GMO International Quality ETF

QLTI

-0.37%

is designed for those seeking high-quality international companies outside of the U.S., focusing on firms with stable earnings, strong cash flows, and robust balance sheets. The GMO U.S. Value ETF

GMOV

-0.47%

offers exposure to U.S. deep value stocks, aiming to capture mispriced opportunities in the domestic market, while the GMO International Value ETF

GMOI

-0.89%

focuses on non-U.S. value stocks across developed markets, catering to investors looking to benefit from dislocations in global equity valuations.

Why Investors Should Consider the ETFs

GMO’s latest ETFs come at a time of growing interest in value investing. The firm identifies that U.S. and non-U.S. deep value stocks are historically undervalued, with non-U.S. developed market stocks reaching their lowest valuations since the 1980s. These ETFs give investors access to undervalued opportunities in both U.S. and international markets, which could be particularly attractive for those seeking a diversified approach to value stocks. Furthermore, QLTI's focus on quality non-U.S. companies presents an opportunity to gain exposure to businesses with consistent earnings and strong balance sheets, especially appealing in a volatile economic environment.

About GMO

GMO is a global investment manager with a long-standing reputation for its valuation-oriented, disciplined approach. The firm has consistently focused on offering investors solutions tailored to long-term performance and value. The launch of these ETFs marks an expansion in GMO’s portfolio of investment options, which began with the U.S. Quality ETF

in 2023. This fund alone has grown to over $1.2 billion in assets, underscoring investor confidence in GMO’s strategy. Building on this momentum, GMO’s new offerings – QLTI, GMOV, and GMOI – are designed to address the need for accessible, strategic exposure to value and quality investments in today’s evolving market landscape.

 

 

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.