GMO Launches Its First ETF, the Actively Managed GMO U.S. Quality ETF (NYSE: QLTY)

BOSTON GMO, a global investment manager, today launched its first exchange-traded fund, the GMO U.S. Quality ETF (NYSE: QLTY).

QLTY leverages GMO’s more than 40 years of quality investing experience to invest in U.S. high-quality stocks, while offering the additional benefits of the ETF structure, including tax efficiency, daily transparency, and continuous liquidity.

“GMO has always been committed to offering innovative investment solutions in the implementation structures that best address the needs of our clients. The launch of our first ETF and potential future ETFs are a natural evolution of that commitment, meeting demand from the intermediary and wealth management channels,” said Scott Hayward, Chief Executive Officer of GMO.

“Quality has a claim on being the most mispriced characteristic in the market over the last 100 years. Since we began researching quality in the 1980s, GMO has focused on finding companies with a consistent and enduring ability to deliver high returns on their investments,” said Jeremy Grantham, Co-Founder and Long-Term Investment Strategist at GMO. 

“Investing in Quality businesses has won over time with lower risk. With our focus on valuation, we believe GMO’s Quality strategy is truly for all markets, able to find great opportunities at attractive prices to participate in the upside of growth periods, while also mitigating risk in weaker environments. Today, as investors have concerns about issues like interest rates, inflation, and the threat of a recession, we believe Quality can be a particularly worthwhile, resilient investment,” said Tom Hancock, Head of GMO Focused Equity and Portfolio Manager of QLTY.

The launch of QLTY and GMO’s expansion into ETFs continues the firm’s mission to solve investment challenges in total alignment with clients’ needs. Launching QLTY offers an implementation structure that aligns with investors seeking tax-advantaged and operationally efficient access to long-running, institutional-grade GMO strategies, which the firm will continue to deliver with the same focus and conviction over the long term.

GMO is a pioneer of quality investing, and the GMO U.S. Quality ETF builds on the foundation of the $14 billion (assets under management) GMO Quality Strategy, which GMO has managed since 2004.

QLTY was launched in partnership with the new Goldman Sachs ETF Accelerator, a digital platform that enables Goldman Sachs’ clients to quickly and efficiently launch, list, and manage ETFs.

About GMO

Global investment manager GMO, established in 1977, brings together focused expertise within its investment teams, industry-leading research, and client solutions and service to advance clients’ goals. Privately owned and renowned for conviction in a valuation-based, long-term investment philosophy, GMO serves sophisticated institutions, financial intermediaries, and families, and managed $58 billion as of September 30, 2023. The firm is headquartered in Boston, with offices in London, Sydney, Amsterdam, San Francisco, Singapore, and Tokyo (representative office).


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