OAKM: Actively Managed Value ETF Following A Questionable Strategy

The Sunday Investor7.16K FollowersFollow5ShareSavePlay(12min)CommentsSummaryOakmark US Large Cap ETF is an actively managed large-cap value ETF led by three experienced investment professionals. Its expense ratio is 0.59%, and the fund has $1.08B in assets under management.OAKM trades at an attractive 13.42x forward earnings and 2.11x trailing book value. With double-digit EPS growth forecasted for next year, it could be an excellent GARP play.However, this analysis highlights how OAKM's selections also have weak earnings surprises, earnings revisions, and quality relative to its two benchmarks.Furthermore, nearly half the portfolio is assigned to Financials and Energy, two sectors whose earnings have been extremely volatile over the last decade.Overall, I'm not impressed with its factor mix, but since it is a new fund and the team itself is highly experienced in volatile markets, OAKM earns a neutral "hold" today. Worawith Ounpeng/iStock via Getty Images Investment Thesis In a Christmas Eve interview on CNBC's "Squawk On The Street", Bill Nygren, portfolio manager of the Oakmark U.S. Large Cap ETF (OAKM), noted the challenge active managers faced inThis article was written byThe Sunday Investor7.16K FollowersFollowThe Sunday Investor is focused exclusively on U.S. Equity ETFs. He has a strong analytical background, has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute, and has completed all the educational requirements for the Chartered Investment Manager designation.Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system which he shares on his website, etf-rankings.com. Nearly 1,000 ETFs receive individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment, which feed into an easy-to-understand composite score from 1-10.

The Sunday Investor is always active in the comments section in his articles - please don't hesitate to reach out via comment in any article or by visiting etf-rankings.com. Happy Investing!Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.