What Is the OAKM ETF? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
This ETF runs a high-conviction active strategy in large-cap US quality value stocks, using rigorous intrinsic value analysis to seek excess returns over the market.
SubscribeWhat Is This ETF?
Through rigorous bottom-up fundamental analysis, the fund invests in large-cap stocks that the market does not fully appreciate. Based on the manager's judgment, it allocates assets across a few dozen carefully selected holdings, aiming to deliver superior performance relative to the index.
It values a company's underlying worth and growth over short-term market noise, making it well suited to long-term value investors who want above-market returns through active management.
It is an actively managed ETF launched by Harris Associates in 2024.
How Does It Invest?
| Item | Details |
|---|---|
| Benchmark Index | S&P 500 Index |
| Management Style | Active (value investing strategy) |
| Rebalancing Frequency | Ad hoc rebalancing |
| Dividend Frequency | Annual |
| Expense Ratio | 0.59% |
The fund estimates the intrinsic value of a company's actual business and buys stocks trading below that value. It selects companies with shareholder-oriented management and sustainable earnings growth, and concentrates its investments in a small group of top holdings in which the manager has strong conviction.
- Combines with Oakmark's value analysis process
- A concentrated, high-conviction portfolio of roughly 30 to 40 holdings
Size and Costs
Assets under management (AUM) stand at $1.2B, and the expense ratio is 0.59% per year.
Despite being an actively managed strategy, the fund maintains a reasonable fee level, and it is characterized by a contrarian approach that treats temporary market distortions as opportunities.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeSupported by shifts in the interest rate environment and an earnings rebound in value-oriented sectors, the fund has shown a solid trajectory, and its value as an alternative asset that balances a market tilted toward a handful of large growth stocks is gaining attention.
Alongside investors who trust traditional value investing, capital seeking alpha above the index through active management continues to flow in.
Strengths and Weaknesses
It is an efficient vehicle for holding quality large-cap stocks at reasonable prices to enhance long-term performance, but investors should be mindful of single-stock risk from concentrated investing and the possibility of the strategy falling out of favor with the market.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
BLCR and AVLC, shown in the table, are competing products that use active and factor strategies in the large-cap market, and EAGL also employs a high-conviction strategy. If you want to track a traditional value stock index, you can consider VTV or IVE, and if you prefer a value ETF with lower fees, SCHV is also worth considering. If you want to broaden the scope to small and mid-cap stocks, RSMC can be an alternative.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 BLCR | iShares Large Cap Core Active ETF | $47.57 | -0.6% | $9.6B | 0.36% | 0.33% | +14.4% |
 CNEQ | Alger Concentrated Equity ETF | $36.51 | -1.7% | $7.5B | 0.56% | - | +1.5% |
 EAGL | Eagle Capital Select Equity ETF | $35.74 | +0.2% | $4.9B | 0.80% | 0.5% | +11.5% |
 LCAP | Principal Capital Appreciation Select ETF | $32.96 | -0.5% | $1.9B | 0.29% | 0.19% | +10.7% |
 AVLC | Avantis U.S. Large Cap Equity ETF | $89.61 | -0.4% | $1.6B | 0.15% | 0.88% | +14.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| COP | Conoco Phillips | 0.05% | $146.84 | -4.7% | $176.4B | 19.4 | 2.3% |
| PSX | Phillips 66 | 0.04% | $275.04 | -2.8% | $107.3B | 8.8 | 1.86% |
| C | Citigroup Inc | 0.08% | $123.10 | +0.4% | $206.5B | 12.0 | 2.09% |
| KDP | Keurig Dr Pepper Inc | 0.04% | $36.82 | +2.7% | $50.1B | 37.3 | 2.54% |
| DAL | Delta Air Lines Inc | 0.04% | $83.42 | +4.1% | $54.9B | 16.7 | 0.98% |
| STT | State Street Corp | 0.04% | $169.31 | -0.3% | $46.1B | 13.8 | 2.08% |
| TRGP | Targa Resources Corp | 0.08% | $294.73 | -6.4% | $63.2B | 28.1 | 1.69% |
| COF | Capital One Financial Corp | 0.04% | $210.77 | +2.9% | $126.8B | 12.4 | 1.53% |
Investor Checkpoints
OAKM is an active product that reflects a professional manager's high-conviction strategy, so before making an investment decision, use the key checklist below to confirm that it aligns with your own investment philosophy.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📊 Valuation | Review the degree of undervaluation and growth potential of holdings | Adequate level |
| ⚖️ Concentration Check | Be aware of the risk of a compact portfolio of about 30 to 40 holdings | In effect |
| 💸 Fee Level | Check whether costs are appropriate compared with similar active large-cap ETFs | Reasonable level |
| 📈 Market Conditions | Whether the macro environment favors value investing strategies | Ongoing monitoring |
Value investing is a strategy that demands patience. Investors should understand that the fund may go through a period of consolidation until the market recognizes a company's intrinsic value, and that the performance gap versus the index can persist for a long time.
It is one suitable option for investors who want to concentrate on selected quality stocks in the US large-cap market and seek results relative to the market. It is a core asset that lets you enjoy Oakmark's investment philosophy with the convenience of an ETF.
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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