This is an active ETF in which portfolio managers select U.S. value stocks they judge to be undervalued relative to their fundamentals. By picking individual stocks and adjusting weightings, the fund seeks to outperform the market.

It suits value-oriented investors who want to invest in U.S. value stocks through active management and expect excess returns, while being willing to accept relative weakness when growth stocks lead the market and the risk of manager error.

It is an ETF managed by Brandes using an active (actively managed) approach.

Based on fundamental analysis, the portfolio managers select U.S. value stocks they judge to be undervalued relative to intrinsic value and invest in them in a concentrated manner. Rather than tracking an index as is, the fund picks stocks and adjusts weightings to seek excess returns over the market, and its structure means the managers' judgment determines performance.

• Active value stock selection
• Concentrated investment based on intrinsic value

Assets under management (AUM) stand at $323.8M, and the total expense ratio is 0.60% per year.

The main point of comparison with index-tracking value ETFs is the managers' strategy of selecting undervalued stocks.

U.S. value stocks are driven by interest rates, the economic cycle, and style rotation. Value strategies tend to be strong when value stocks are in favor and weak when growth stocks lead. When active selection works out, the fund can beat value indexes, and when it misses, it can lag them.

For active value funds, fund flows diverge depending on management performance, risk appetite, and style rotation, and money sometimes shifts into related products when interest in value investing rises. It is also worth watching how fund flows change with management results and market conditions.

Active value selection is its strength, while weakness in growth-led markets, manager risk, and the fee burden are points to consider.

For exposure to large-cap value stocks that simply track an index, direct substitutes include VTV, and IWD is another product worth comparing for large-cap value exposure. For S&P 500 value stock exposure, products such as IVE can also be considered. The three products shown in the table, VTV, IWD, and IVE, all track value indexes and are run without active selection, which is where they differ. For this ETF, Brandes' intrinsic-value-based value selection is the differentiating factor.

Here are the points to review before investing in BUSA. Active value selection is appealing, but relative weakness when growth stocks lead, manager risk, and the fee burden should be confirmed in advance. It is also a good idea to compare it with index-tracking value products.

Relative weakness when growth stocks lead and underperformance if the managers' selections miss are the main variables for long-term performance, and as an actively managed fund it carries a heavier fee burden than index-tracking products. If the selected stocks perform poorly, the fund may lag value indexes.

It is a suitable candidate for value-oriented investors who want to invest in U.S. value stocks through active management and expect excess returns. If you want to track an index as is, consider products such as VTV and IWD, and if you want active value selection, it is advisable to compare this product alongside them before choosing.