CornerCap Investment Counsel Launches Fundametrics® Large Cap ETF
ATLANTA, Aug. 20, 2020 /PRNewswire/ -- As investors seek opportunities to navigate these unprecedented financial conditions, growth style and capitalization-weighted indices have dominated the investment landscape. Investors looking to calibrate their portfolios for the long term, however, are rekindling an interest in equal weighted strategies that pay attention to the valuation of companies in their portfolios. Today, CornerCap Investment Counsel launches a new Large Cap ETF, an unusual offering in the current landscape where investors chase large high-growth companies at any price.
The CornerCap Fundametrics® Large Cap ETF [FUNL] is an actively managed strategy that evaluates companies against their custom peer groups. Each peer group is composed of companies that have similar economic and factor style drivers. The process of evaluating each peer group can be unique, where the CornerCap process generally favors stocks with attractive prospects for growth while trading at reasonable valuations. By leveraging active management through a passive vehicle, one of the fund's goals is to keep costs lower than comparable actively managed Value funds while offering tax efficiency and trading flexibility.
"There are record numbers of new ETFs launching, but they are focused on Growth rather than Value, which is known for low price ratios and business generally trading at a discount to their fundamental outlooks," Cannon Carr, CEO of CornerCap Investment Counsel, said. "Valuation-sensitive strategies have been out of favor in recent years, but our research gives us reason to believe Value, complemented by a quality overlay, is the better opportunity in the coming years."
The trend of Large Cap allocations moving into passive index investments has been significant. Capitalization weighted indexes are leveraged now more than ever to just a few stocks. Investors can find themselves less diversified than they realize. The CornerCap Fundametrics® Large Cap ETF offers a complement to capitalization weighted indexes.
To create the fund, the CornerCap investment team leveraged the firm's 30+ years of stock selection experience and its proprietary research platform, Fundametrics®. The fund will be managed by Jeff Moeller, director of research for CornerCap Investment Counsel.
"In these unpredictable times, clients have heightened concerns and a lot of questions about what the future holds for their hard-earned money," Moeller said. "We created a fund that positions their portfolios to potentially benefit when investors rotate to Value funds. We take pride in helping clients invest for long-term success, taking into account where we believe the market is going, and not solely focused on where it is today."
To learn more about the CornerCap Investment Counsel Fundametrics Large Cap ETF, visit www.CornerCapFUNL-ETF.com.
About CornerCap Investment Counsel
Founded in 1989, CornerCap Investment Counsel is an employee-owned Registered Investment Advisor and institutional asset manager based in Atlanta, Ga. with an office in Charlotte, NC. The firm manages more than $1B in assets for institutions, high net worth individuals and investors in early stages of accumulating wealth. Divisions of the company include CornerCap Institutional, CornerCap Wealth Advisors, CornerCap Group of Funds and MAP: My Accumulation Plan. For more information about CornerCap services, visit CornerCapInvestmentCounsel.com.
The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling (404) 870-0700, or visiting www.CornerCapFUNL-ETF.com. Read it carefully before investing.
Investing involves risk; Principal loss is possible. Please see the prospectus for additional risks related to investing in the Fund.
CornerCap Investment Counsel serves as the advisor to the CornerCap Fundametrics Large-Cap ETF (FUNL) which is distributed by Quasar Distributors, LLC.
SOURCE CornerCap Investment Counsel
Share this article