WAGN: The ETF That Bets Big on a Few Great Businesses

The "Circle the Wagons" Philosophy

The fund’s name is an homage to the defensive formations of 19th-century pioneers. Just as those settlers protected their most valuable assets by "circling the wagons," WAGN concentrates its capital into a small collection of high-conviction businesses.

As a non-diversified ETF, WAGN ignores the traditional pressure to mirror the S&P 500. Instead, it prioritizes quality over quantity, seeking out companies with wide economic moats, resilient leadership, and long reinvestment runways.

The goal is simple: find outstanding businesses at a deep discount to their intrinsic value, and then let the power of compounding do the heavy lifting.

A Global Hunt for Value

WAGN operates with a "go-anywhere" mandate that is increasingly rare in the ETF world. While many funds are tethered to specific regions or market caps, WAGN is deliberately unconstrained.

The fund can—and does—invest up to 100% of its assets outside the United States, hunting for value in emerging and frontier markets where others fear to tread.

From airport operators in developing economies to out-of-favor financial services and commodity-linked enterprises, the portfolio seeks out "special situations."

These are often companies undergoing management transitions or restructuring—businesses that the broader market has discarded, but which offer significant long-term recovery potential.

As of February 16, 2026, WAGN’s top holdings highlight its high-conviction, globally opportunistic approach.

The 18 holdings portfolio is led by Edelweiss Financial Services (14.37%) and Turkey’s TAV Havalimanlari Holding (12.16%), followed by Warrior Met Coal (10.58%), underscoring the fund’s willingness to lean into emerging markets and cyclical industries.

Energy and commodity exposure remains meaningful through names like Valaris, Transocean, and Noble Corp, while select consumer and real estate positions in Turkey sit alongside U.S. homebuilder Toll Brothers.

Discipline in an Overheated Market

Perhaps the most distinctive feature of the strategy is its comfort with inactivity.

WAGN is not required to be fully invested at all times. If the manager finds the market overpriced, the fund can hold meaningful cash positions, waiting patiently for the next market dislocation to deploy capital selectively.

This disciplined approach is reflected in the fund’s current fundamentals. While the broader S&P 500 has seen its valuation swell to roughly 29 times earnings, the WAGN portfolio trades at a significant discount of approximately 15 times earnings.

This deep value orientation is further bolstered by the fact that many of its holdings are actively repurchasing their own shares—a move that accelerates compounding for long-term shareholders.

The Verdict for Investors

WAGN is not designed for the short-term trader. It is a vehicle for the patient investor who recognizes that true diversification doesn't mean owning more stocks—it means owning different stocks.

With minimal overlap with traditional benchmarks and a focus on overlooked geographies, WAGN provides a genuine alternative to the "Magnificent Seven" obsession of the current era.

For those willing to look past the noise of the daily ticker, WAGN offers a seat at the table with one of value investing’s most seasoned practitioners, following a strategy built for the long haul.

About Pabrai Wagons Advisors

Pabrai Wagons Advisors is an investment firm founded and managed by Mohnish Pabrai, a 27-year veteran investor overseeing more than $1.1 billion across value-focused strategies. The Firm builds concentrated portfolios of high-quality businesses worldwide and seeks to hold them for the long term. Our philosophy is simple: exceptional results often come from a small number of outstanding investments held for many years. The challenge is not only identifying those opportunities, but also having the discipline to keep them. Like the defensive formation used by American pioneers in the 1800s, the Fund aims to “circle the wagons” around its highest-conviction holdings, which we believe offer the greatest potential for long-term returns.

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.