The Longview Advantage ETF (EBI), has an effective prospectus, but will not be available for trading until on or about February 25, 2025.

Valuation Timing

While history tells us that value stocks tend to outperform growth stocks over time, the value premium can’t be reliably timed. However, by adjusting the tilt toward value based on valuation spreads, we believe that investors can potentially capture higher returns when spreads are wider and reduce tracking error when spreads are lower. In other words, take more value exposure when you are paid more for it.

Release the Constraints

Our research tell us that traditional style boxes, like those created by Morningstar, limit investment potential by imposing unnecessary constraints. We believe that by focusing on risk and return rather than rigid categories, investors can achieve more efficient outcomes to help meet their expectations.

The Momentum Catch 22

Evidence-based investors want exposure to a factor like momentum because it is a powerful driver of returns; capturing it effectively is typically challenging due to high trading costs and turnover. We believe that seeking a balanced approach that integrates momentum with other factors, especially at lower asset levels, can help capture the momentum premium without the excessive costs.

Investors Demand Different Returns

We believe that by solving for expected returns directly, investors can achieve a purer and more efficient exposure to the tradeoff between risk and return.

Premium Drag

Trading costs and delays in executing trades can significantly drag on returns for large asset managers, especially in small value stocks. Smaller, nimbler firms can avoid these issues by executing trades more efficiently, thereby better capturing the value premium.

Matthew Zenz, Longview Advantage Fund

Why Longview?

After scrutinizing the universe of strategies used by evidence-based firms, we realized that none fully captured what clients deserve.