The Oakmark U.S. Large Cap ETF (OAKM) seeks to provide long-term capital appreciation by investing in undervalued large-capitalization U.S. companies. This actively managed equity ETF focuses on identifying fundamentally strong businesses trading below their intrinsic value through rigorous bottom-up research and analysis.
How It Works
OAKM employs an active value investing approach, with portfolio managers conducting fundamental analysis to select 25-35 large-cap U.S. stocks they believe are trading at significant discounts to fair value. The fund concentrates holdings in companies with strong competitive positions, capable management, and attractive risk-adjusted return potential. Portfolio turnover is typically low as managers maintain long-term positions, rebalancing based on valuation changes rather than fixed schedules.
Key Features
- Concentrated portfolio of 25-35 high-conviction positions allows for meaningful impact from best investment ideas
- Experienced Oakmark team with decades-long track record of successful value investing in large-cap U.S. equities
- Recently launched ETF structure provides tax efficiency and daily liquidity for proven investment strategy
Risks
- This ETF can lose value if value investing falls out of favor, as growth stocks may significantly outperform during extended periods
- Concentrated portfolio means individual stock selections have outsized impact—poor picks can meaningfully drag down overall performance for extended periods
- Large-cap equity exposure means potential 30-40% declines during severe market downturns, though active management may provide some downside protection
Who Should Own This
Best suited for investors with 5+ year time horizons seeking active large-cap value exposure as a satellite holding (10-25% of equity allocation). Requires medium-to-high risk tolerance given concentration risk and value investing's cyclical nature. Appropriate for those comfortable with active management fees and potential periods of underperformance.