John Spence discusses new ETFs named after Benjamin Graham in his recent Wall Street Journal Article, “ETNs Follow Ideas of Investor Graham“.
Deutsche Bank is issuing a trio of exchange-traded notes which track indexes based on the beliefs of Benjamin Graham, the father of “value”-stock investing. According to Deutsche Bank, The ETNs seek to find businesses with “strong, liquid balance sheets that trade at a discount to the implied intrinsic value.”
The ETNs are named Benjamin Grahama Large Cap Value Elements (BVL), Benjamin Grahama Small Cap Value Elements (BSC), and Benjamin Graham Total Market Value Elements (BVT). The small-cap and total-market versions hold 100 stocks while the large-cap holds 50 stocks. All three ETNs have an expense ratio of 0.75%.
The New ETNs track the Banjamin Graham Intelligent Value Indexes. These indexes were developed by a unit of Nuveen Investments called HydePark. It should be noted that Nuveen has contracted to pay a fee to use Mr. Graham’s name.