The Segall Bryant & Hamill Select Equity ETF (USSE) seeks to provide long-term capital appreciation through active management of a concentrated portfolio of U.S. equity securities. This actively managed ETF focuses on selecting high-quality companies that the fund managers believe are undervalued or have strong growth potential.
How It Works
USSE employs an active management approach where Segall Bryant & Hamill's portfolio managers use fundamental analysis to select individual stocks based on their proprietary research and valuation models. The fund maintains a concentrated portfolio of typically 30-50 holdings, allowing for meaningful position sizes in the managers' highest-conviction ideas. Portfolio construction emphasizes quality metrics including strong balance sheets, sustainable competitive advantages, and experienced management teams. Rebalancing occurs as needed based on changing market conditions and new investment opportunities.
Key Features
- Newly launched in August 2023, offering investors access to Segall Bryant & Hamill's established institutional investment management expertise
- Concentrated approach with 30-50 holdings allows for meaningful allocations to managers' highest-conviction investment ideas
- Zero expense ratio structure makes it cost-competitive compared to typical actively managed equity funds charging 0.50-1.00% annually
Risks
- This ETF can lose significant value due to active management decisions, as concentrated stock picking may underperform broad market indexes during certain periods
- Concentration risk means poor performance from a few large holdings could substantially impact overall returns given the focused portfolio approach
- As a newly launched fund with minimal assets, liquidity constraints and tracking difficulties may occur during volatile market conditions
Who Should Own This
Best suited for investors with 3-5+ year time horizons seeking active equity management as a satellite holding representing 5-15% of their equity allocation. Requires medium-to-high risk tolerance due to concentration and active management risks. Appeals to investors who believe skilled managers can outperform passive indexing over time.