Daily ETF Watch: ValueShares Fund To Launch

Newcomer Alpha Architect will roll out value-focused actively managed fund.

Reviewed by: Heather Bell
Edited by: Heather Bell


Alpha Architect, a value-focused investment firm that provides separately managed accounts and now ETFs, will roll out its first fund on Wednesday, a release from the BATS exchange said.

The ValueShares U.S. Quantitative Value ETF (QVAL) is actively managed, using Alpha Architect’s Quantitative Value model, which incorporates forensic accounting, valuation and quality screens to identify undervalued companies.

The prospectus notes that the fund will hold about 50 U.S. equities and will be rebalanced to its target allocations at least twice a year. Although the ETF can hold companies from any market-cap segment, it is expected to tilt toward large-cap stocks, the prospectus said.

QVAL comes with an expense ratio of 0.79 percent.

Perhaps the most direct competitor would be the Columbia Select Large Cap Value ETF (GVT | C-69), which only has $8.5 million in assets and an expense ratio of 0.74 percent. The actively managed fund uses multiple managers and targets undervalued domestic large- and midcap stocks.

However, the First Trust Large Cap Value AlphaDex ETF (FTA | B-69) tracks an index that could be described as “quasi-active” and implements a quantitative approach; it has an expense ratio of 0.67 percent and more than $1 billion in assets under management.

Hyland To Leave USCF
John Hyland, one of the more colorful figures in the exchange-traded fund industry, next spring will leave his post as chief investment officer of United States Commodity Funds, a firm that did much to popularize and legitimize investing in futures-based commodities ETFs. His resignation is effective May 1, 2015, the Oakland-based firm said in a press release.

Hyland spearheaded the launch of United States Oil Fund (USO | A-70), USCF’s first ETF, in 2006, and the expansion of the firm’s lineup that followed. USCF currently has a dozen futures-based commodity ETFs trading, with a total of nearly $2.4 billion in assets under management.

No reason was given for his departure.

Hyland has been involved in investment management for nearly three decades, joining USCF in 2005.

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.