This is an actively managed ETF that does not track an index. Instead, the management team selects stocks directly. It invests most of its net assets in U.S. company stocks and runs a non-diversified portfolio concentrated in roughly 15 to 20 large-cap names.

It suits long-term investors who can accept a concentrated value-investing portfolio and tolerate a performance path that differs from the market index.

It is an ETF with an active (actively managed) strategy, managed by Harris Associates.

The fund invests most of its net assets in U.S. large-company stocks, selecting companies trading at a discount to intrinsic value and holding a compact portfolio of roughly 15 to 20 names. It is managed to avoid concentration in any single industry and targets long-term capital growth.

• A non-diversified, concentrated portfolio compressed into a small number of stocks
• Active selection based on the Oakmark value-investing philosophy
• A contractual agreement by the manager to waive part of its fees

Assets under management (AUM) stand at $327.6M, and the total expense ratio (Expense Ratio) is 0.59% per year.

As an actively managed, concentrated fund, its fees tend to be higher than those of low-cost index ETFs. The manager contractually waives part of the fee, so the actual burden is lower than this figure, but it is wise to check when the waiver agreement expires.

Because it holds few stocks, its performance can diverge sharply from the index depending on individual company earnings and the trend in value stocks. Its listing history is short, so there is not yet enough data to judge long-term return trends.

It belongs to a group of products that package the Oakmark investment philosophy, long known through mutual funds, into an ETF. As a new fund, its size is still small, and fund flows are influenced by investor preference for value stocks and demand for active ETFs.

Its strength is its focus on the highest-conviction stocks of a value-investing management team, while the volatility that comes from concentration in a few stocks and its relatively high fee are weaknesses.

This fund has no peers in a comparison table, so an asset-class comparison is more appropriate. An actively managed U.S. large-cap product from the same manager, such as OAKM, offers an option with broader holdings. If you prioritize cost and diversification over concentration, you can consider it alongside products such as VOO, which tracks the S&P 500, and VTV, an index-based large-cap value fund.

The Oakmark U.S. Concentrated ETF puts the management team's judgment behind a small number of stocks. Before investing, review its concentration, fees, distribution policy, and track record in turn.

Because of its non-diversified, concentrated structure, bad news for an individual stock can heavily affect the entire fund. In periods when value stocks stay out of favor for a long time, it may lag the market index, and as a new fund, its trading volume and bid-ask spread also need to be checked.

It is well suited to investors who already hold a diversified core portfolio and want to add a portion as an actively managed value-investing satellite holding. We recommend setting your allocation with the concentration risk and fee level in mind.