This is an actively managed ETF that does not track a specific index. The management team picks US large-cap stocks it believes are priced below the underlying value of the business, and builds the portfolio on the assumption of multi-year holding periods. Most of its assets are placed in stocks listed in the US and overseas.

It suits long-term investors who would rather rely on stock selection than follow an index, and who can tolerate stretches when performance diverges from the benchmark.

The ETF is run with an active management approach by Eagle Capital Management.

The fund buys large-cap stocks whose market price, in the managers' view, falls short of value after weighing each company's business structure and cash-generating power. It keeps the number of holdings narrow, so top positions carry heavy weights, and it holds turnover low to harvest returns over a long horizon.

• Concentrated portfolio of a small number of stocks
• Multi-year holding periods assumed
• Active management that does not track an index

Assets under management (AUM) stand at $4.9B, and the expense ratio is 0.80% per year.

Because it is actively managed, its fee is higher than that of broad core ETFs, and the gap has to be made up through stock-selection performance.

Performance depends heavily on the moves of a small number of stocks. Because the fund does not follow an index, it can lag even when the market is rising, and when its picks pay off, the gap in its favor can widen. It is the type of fund that is hard to judge from short-period returns alone.

Since its listing, money has flowed in steadily, placing it among the larger active ETFs. While demand for value-oriented large-cap strategies continues, inflows are likely to hold, but in phases when performance trails the index, capital could flow back out.

Stock selection and long holding periods are its strengths, while the volatility that comes with concentrated investing and the fee burden typical of active funds are its weaknesses.

Active large-cap products such as BLCR and CNEQ, shown in the table, are the direct comparisons, and OAKM likewise promotes value-leaning large-cap management. On fees and fund size alone, AVLC and LCAP carry a lighter cost burden. For those uneasy about active management, broad core index products such as VOO and IVV are options, and for a focus on the value style, index-based alternatives such as VTV and IWD are also worth considering.

Here are the points to check before investing in EAGL. Because it is an active product that does not follow an index, it is wise to settle in advance on costs, stock concentration and what benchmark to compare performance against.

The main risks are concentration in a few stocks and the performance dispersion of active management. The fund can trail the index even when the market is rising, and if that stretch drags on, the fee burden cuts into returns further.

It is worth considering if the money is meant to be left in the hands of stock selection for a long time. If you want to save on costs and follow the market average, core products such as VOO and IVV are a better fit.