Kovitz Investment Group Partners Launches New Active US Equity-based ETF

Kovitz Investment Group Partners, an independently managed investment advisory and value-oriented wealth management firm that manages more than $6.5bn, has launched Kovitz Core Equity ETF (EQTY).

The actively managed ETF has more than $642 million in assets and an expense ratio of 0.99%.

EQTY will invest primarily in US equity securities and foreign companies, including small and midcap companies, targeting the S&P 500 Index for US-based companies and the S&P Global 100 Index for its non-US-based companies.

The Chicago-based firm converted its existing mutual funds – Green Owl Intrinsic Value Fund (GOWLX) and Marathon Value Portfolio (MVPFX) – into the new ETF along with over $500 million of assets from separately managed accounts.

Kovitz relaunched its 11-year-old value mutual fund as an exchange-traded fund following other issuers making similar moves as demand for ETFs surges.

Kovitz’s conversion is the latest in a progression of similar moves made by firms such as Dimensional Fund Advisors, Franklin Templeton Investments and Fidelity Investments, which announced it was converting six of its thematic mutual funds into ETFs last month, as demand for ETFs outpaces mutual funds.