SEIV Profile
The SEI Large Cap Value Factor ETF is designed to provide investors with exposure to a diversified portfolio of large-cap U.S. companies that exhibit value characteristics. In line with its investment strategy, the fund typically invests at least 80% of its net assets, including any borrowings used for investment purposes, in equity and equity-related securities. This encompasses common stocks, convertible bonds, convertible preferred stock, depositary receipts, warrants, and rights issued by large-cap U.S. companies.
The ETF's investment focus is on identifying and investing in large-cap companies that are perceived to be undervalued relative to their intrinsic worth. Value investing is centered around selecting stocks that are trading below their estimated intrinsic value based on various financial metrics. The underlying index for the ETF targets large-cap stocks with strong value attributes, including low price-to-earnings ratios, low price-to-book ratios, and high dividend yields, with the goal of achieving capital appreciation over time.
By concentrating on value stocks, the SEI Large Cap Value Factor ETF aims to offer investors potential for higher returns associated with undervalued securities. The ETF's methodology involves assessing and ranking companies based on value factors, which helps in constructing a portfolio that emphasizes stocks trading at a discount relative to their fundamentals. This approach can provide a strategic advantage in capturing upside potential as these stocks are recognized and valued by the market.
Investing in value stocks can offer opportunities for growth, especially during periods when the market corrects undervalued assets. However, it is important to note that value investing may also involve greater exposure to market fluctuations and economic cycles. The SEI Large Cap Value Factor ETF provides a focused approach for investors seeking value-driven opportunities within the large-cap equity space, aiming to achieve superior risk-adjusted returns by capitalizing on undervalued investment opportunities.
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