VALX: A New Guru ETF That Mimics The All-Time Greats

Let’s take a look under the hood of VALX. This guru ETF’s portfolio is comprised of 100 stocks using 10 distinct guru-based models, which are themselves chosen from a pool of 17 total models. The original pool of 17 is narrowed down to 10 based on their long-term performance and their correlation to each other.

VALX is not beholden to any one strategy type; its 17 identifiable strategies are a mixture of value, growth and momentum strategies. VALX is also not hemmed in by market cap restrictions; its holdings span the small, mid, and large-cap universes.

So, what is VALX buying today? Let’s take a look at the current portfolio.

There are definitely some contrarian plays in the portfolio. Russian oil company Lukoil (LUKOY) and battered American handbag maker Coach (COH) are current top holdings, as is oilfield servicer National Oilwell Varco (NOV).

So, what’s the verdict on the Validea Market Legends ETF?

It’s too early to draw any conclusions based on performance, as the ETF has only been trading since December, but its methodology is interesting and warrants following. It’s definitely worth noting that the ETF’s manager, John Reese, is a respected researcher and a long-time contributor to Forbes.

For the individual stock pickers out there, VALX—along with the other guru ETFs GURU, ALFA and IBLN—can be used as a convenient stock screener for investment ideas and a launching pad for further research.

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Disclaimer: This post is for informational purposes only and should not be considered specific investment advice or as a solicitation to buy or sell any securities.

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