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Follow Stock Market Gurus with These ETFs - ETF News And Commentary

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Most investors would like to emulate investing styles of stock market gurus like Warren Buffett, Ben Graham, Cark Icahn or David Einhorn. And it’s not easy!


Fortunately, there are a few ETFs available to investors that they can use to invest like stock market gurus. These ETFs either try to clone gurus’ stock investments or imitate their investing styles. We’ll discuss two ETFs today—one that mimics the stock investments and the other that follows their investing style. As expected, both these ETFs aim to outperform the broader market.


Global X Top Guru Holdings Index ETF (GURU)


GURU uses a proprietary methodology to compile the best ideas from a select pool of hedge funds.  In the US, all hedge funds with more than $100 million in equity investments are required to publish their holdings in a publicly available document called the 13F. This ETF uses the most valuable information available in 13Fs. They exclude hedge funds with high turnover. 


The product charges 75 basis points in expenses per year.  Since inception, it has returned almost 28% in annualized terms, significantly beating the S&P 500 index.

 

Validea Market Legends ETF (VALX)


The Validea Market Legends ETF is an actively managed ETF that aims to follow to stock investing styles of Wall Street legends. They select 100 stocks using 10 distinct "guru"-based models. These models are based on different investment styles, including value, growth, momentum and income.


So, they start with a universe of about 2,500 US traded stocks that meet their liquidity requirement, filter these stocks through their models and then rank them to select 100 stocks with top scores. The portfolio is rebalanced monthly. The product charges an expense ratio of 79 basis points annually.


This ETF is very new; it was launched in December last year. It has returned about 4.4% since inception compared with 3.3% for the S&P 500 during the same period.


Please watch the short video below for more information on this topic:

 


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VALID-MKT LGND (VALX): ETF Research Reports
 
ALPHACLN-ALT AL (ALFA): ETF Research Reports
 
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