Exchange Traded Concepts and Tiedemann Wealth Management have launched the Deep Value ETF on the NYSE Arca, providing exposure to undervalued companies with strong balance sheets.

Exchange Traded Concepts and Tiedemann Wealth Management have launched the Deep Value ETF on the NYSE Arca, providing exposure to undervalued companies with strong balance sheets.

“With US corporate balance sheet strength at its highest level in over 30 years, CEOs are increasingly under pressure to maximize shareholder value. The TWM Deep Value Index was developed to provide exposure to undervalued, dividend paying stocks where value creation is expected to come from improving fundamentals, investor activism, or merger and acquisition activity,” said Paul Buongiorno, managing director and chief investment strategist at Tiedemann Wealth Management.

The TWM Deep Value Index, which the ETF tracks, is comprised of 20 large-cap stocks that are considered undervalued compared to the S&P 500 Index. The companies are weighted based on a rules-based assessment of their valuation.

The index is reconstituted annually in September and the portion of the index with the 10 smallest weighted companies is reconstituted quarterly in December, March and June.

Primary responsibility for day-to-day management of the Deep Value ETF resides with Mellon Capital, a sub-advisor retained by Exchange Traded Concepts.