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Keep Winners & Avoid Losers with This ETF

Neena Mishra
  • (1:15) - David Barse: Former CEO of Third Avenue Management
  • (5:30) – David’s Move From Active Management to Indexing
  • (11:45) - GraniteShares XOUT U.S. Large Cap ETF: XOUT
  • (19:20) - How Does XOUT Fit Into An Investor’s Portfolio?
  • (25:45) - Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight, I speak with David Barse, CEO of XOUT Capital, and Will Rhind, CEO of GraniteShares.

David, former CEO of Third Avenue Management, now believes that finding winners is hard and it is easier to cut out the losers. His company created the index for the GraniteShares XOUT U.S. Large Cap ETF XOUT.

XOUT evaluates the S&P 500 companies and determines how they are addressing the challenges of technological disruption.  It uses nine quantitative factors to eliminate 250 stocks. These factors include weak revenue growth, lack of employee growth, failure to reinvest in the business and/or company stock, negative earnings sentiment, lackluster management performance and poor profitability.

The fund’s top holdings are Apple AAPL Microsoft MSFT, Amazon AMZN, Alphabet GOOG and Facebook FB.  Well-known stocks that do not find a place in the portfolio, include Walmart WMT Exxon Mobil XOM, Walt Disney WMT and Berkshire Hathaway BRK.B.

Technology gets highest allocation in the portfolio—32%, while 20% of the fund is in Financials and 14% in Communications.

GraniteShares is best known for its low-cost commodity ETFs, such as the GraniteShares Gold Trust BAR, which is one of the cheapest physically backed gold ETFs. With an expense ratio of 0.60%, XOUT is rather expensive. Why should investors consider it?

We also discuss how investors can use XOUT in their portfolio. To learn more, please visit GraniteShares. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com .

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
Alphabet Inc. (GOOG) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
GRNTS-XOUT USLC (XOUT): ETF Research Reports
GraniteShares Gold Trust (BAR): ETF Research Reports
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