What Is the EQTY ETF? Returns, Expense Ratio, Holdings, and Alternative ETFs at a Glance
An actively managed equity ETF built on intrinsic value. It concentrates on a small number of high-conviction stocks in pursuit of long-term growth.
SubscribeWhat Is This ETF?
The fund uses a concentrated strategy, holding only about 35 to 40 carefully selected stocks, centered on large-cap US companies. Based on a research-driven value investing philosophy, it looks for opportunities in companies trading below their true value.
It suits value investors who trust the manager's stock-picking ability over simple index tracking and who expect the benefits of concentrated investing.
It is an actively managed ETF launched by Kovitz in 2011.
How Does It Invest?
| Item | Details |
|---|---|
| Tracking Index | N/A (targets excess returns over the S&P 500) |
| Management Style | Active (concentrated investing) |
| Rebalancing Frequency | As needed (active) |
| Dividend Frequency | Annual |
| Total Expense Ratio | 0.99% |
Through a proprietary research model, the fund evaluates each company's economic moat and its ability to generate sustainable earnings. Rather than weighting by market capitalization, it adjusts position sizes according to its conviction in each stock and manages the portfolio with a medium- to long-term perspective.
- A concentrated portfolio of 35 to 40 high-conviction stocks
- A proven investment strategy converted from a mutual fund
Size and Costs
Assets under management (AUM) stand at $1.4B, and the total expense ratio is 0.99% per year.
Unlike VOO or IVV, which replicate an index as is, this fund has a manager who selects stocks directly, and its valuation approach stands out when compared with other active core products such as DFAE or CGDG. It is a quality-focused strategy with a different character from SDIV, which concentrates on high dividends.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund has delivered solid results in market environments that favor value stocks, and its share price moves differently from the index depending on earnings releases of specific quality holdings and company-level issues.
As investor interest in active ETFs grows, the fund has continued to expand its assets steadily, drawing inflows from investors who want performance that differs from the index.
Strengths and Weaknesses
Professional stock selection offers the chance to earn higher returns than the index, but concentrated investing carries significant single-stock risk.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
DFAE, CGDG, and SDIV in the table are active competing products, each with its own area of specialization. If you want to hold the market index at low cost, VOO or IVV may be options, and if you want to focus more on value metrics within large caps, RWL or IWB can serve as alternatives. If you want to combine this with socially responsible investing, DSI is also worth considering.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 DFAE | Dimensional Emerging Core Equity Market ETF | $36.93 | +1.1% | $9.3B | 0.29% | 2% | +12.3% |
 CGDG | Capital Group Dividend Growers ETF | $38.12 | +0.1% | $5.8B | 0.47% | 2.28% | +7.7% |
 SDIV | Global X SuperDividend ETF | $23.02 | -0.2% | $1.1B | 0.58% | 9.67% | -3.8% |
 EYLD | Cambria Emerging Shareholder Yield ETF | $46.20 | +0.7% | $904.6M | 0.65% | 4.6% | +19.0% |
 FDD | First Trust STOXX European Select Dividend Income Fund | $19.15 | -0.1% | $888.5M | 0.56% | 5.51% | +17.6% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| GOOGL | Alphabet Inc | 0.09% | $320.58 | +1.2% | $3.91T | 16.1 | 0.25% |
| SCHW | Charles Schwab Corp | 0.09% | $89.30 | -0.5% | $154.4B | 15.2 | 1.43% |
| MSFT | Microsoft Corp | 0.05% | $531.33 | -0.2% | $3.95T | 29.6 | 0.74% |
| V | Visa Inc | 0.05% | $401.86 | -0.6% | $750.3B | 34.5 | 0.75% |
| ICE | Intercontinental Exchange Inc | 0.09% | $155.44 | -2.9% | $87.3B | 21.9 | 1.35% |
| AON | Aon Plc | 0.04% | $302.50 | +0.1% | $64.2B | 16.7 | 1.06% |
| PM | Philip Morris International Inc | 0.04% | $202.62 | +0.4% | $315.8B | 29.6 | 3% |
Investor Checkpoints
These are the key points to review when considering an investment in EQTY. You should fully understand that it is an active fund, not a simple index-tracking product, and that the manager's ability matters.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cost level resulting from active management | Relatively high |
| 📊 Portfolio Concentration | Check top holding weights and sector concentration | Regular review needed |
| 📈 Management Performance | Check whether it has achieved excess returns over the S&P 500 index | Verification needed |
| 📅 Manager Philosophy | Check whether value investing principles are applied consistently | Verified |
Because the strategy concentrates on a small number of stocks, performance can diverge significantly from the market index, and investors should note that the fund may be sensitive to changes in the management environment, such as a manager replacement.
It is a concentrated active product suited to investors who seek alpha above the index and agree with value investing principles, and it is an option for those expecting long-term growth.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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