This is a global value-oriented active ETF that selects and holds companies from around the world that the managers believe have more long-term upside potential than downside risk. It holds both US and international stocks, and the management team actively adjusts holdings and weightings based on its own judgment.

It suits long-term investors who want global diversification and value-oriented exposure through the managers' stock selection rather than index tracking.

It is an actively managed ETF run by Scharf Investments.

Rather than following an index, the managers analyze global stocks directly and pursue a value-oriented strategy that exploits inefficiencies such as undervaluation, quality and market sentiment. The portfolio is relatively concentrated in high-conviction names, and it holds both US and international exposure to achieve diversification.

• Value-oriented active management with an emphasis on downside protection
• Global diversification spanning the US and international markets

Assets under management (AUM) stand at $168.3M, and the total expense ratio is 0.59% per year.

Fees are on the higher side compared with passive global ETFs, and performance depends heavily on the managers' stock-selection skill.

Given the nature of a value-oriented selection strategy, it may lag broad indexes during strong market phases, while its defensive character tends to stand out during corrections. Short-term movements vary with the global economy, exchange rates and the makeup of its holdings.

Fund inflows and outflows follow demand for active global value strategies, and during volatile markets, money seeking defensive assets sometimes flows in. Fund flows tend to respond sensitively to management performance and market conditions.

The managers' value selection and global diversification are its strengths, while higher fees than passive products and reliance on active performance are its weaknesses.

VYMI, DFAI, DFIC, DFAX and VIGI shown in the table are passive or rules-based ETFs that invest in international and global stocks. They differ from this actively managed product in that they diversify broadly at lower fees without manager discretion. In addition, VT and ACWI, which invest in stocks worldwide, GVAL, which focuses on global value stocks, and IQLT, which centers on high-quality international stocks, can also be reviewed as comparison candidates.

Here are the points to review before investing in GKAT. Because it is an active global value product run directly by managers rather than tracking an index, it is wise to check in advance the cost burden, the dependence on the managers' selection skill, and the currency impact from its international weighting.

The key risks are that performance depends heavily on the managers' judgment and that fees are higher than those of passive products. It may trail broad indexes in strong market phases, and currency fluctuations stemming from the international weighting should also be considered.

This is a global active ETF suited to investors who want the managers' value selection and a defensive character instead of index tracking. If cost is a priority, passive alternatives such as VT and ACWI may be a better fit.