Crossmark Large Cap Value ETF Stock Price, News & Analysis

Crossmark Large Cap Value ETF (CLCV) is an actively managed exchange-traded fund introduced by Crossmark Global Investments, a faith-based investment management firm that focuses on values-based investment strategies. According to Crossmark, this ETF is designed for investors seeking exposure to large-cap value securities in the U.S. equity universe while incorporating a defined values-based screening process.

The Crossmark Large Cap Value ETF is managed by Crossmark Global Investments, which states that it applies both exclusionary and inclusionary values-based criteria. The fund uses these criteria alongside fundamental and quantitative analysis, portfolio constraints, and risk management tools. The stated goal of the ETF is to seek long-term capital appreciation by identifying resilient value-oriented securities.

Crossmark explains that its values-based screening process removes certain companies from the investment universe based on negative business practices or corporate governance concerns. In addition, the adviser notes that it may actively include companies that, in its view, work to reduce risk and build long-term resilience through responsible business practices. This approach is presented as a way for investors to align investment choices with specific values while pursuing performance objectives.

The ETF aims to outperform the Russell 1000 Value Index, which is described as a measure of the performance of the large-cap value segment of the U.S. equity universe. The Russell 1000 Value Index includes companies with relatively lower price-to-book ratios, lower medium-term growth forecasts, and lower historical sales growth compared to the broader Russell 1000 universe. Crossmark positions the ETF’s strategy as seeking value opportunities within this large-cap value segment.

Crossmark notes that the Crossmark Large Cap Value ETF mirrors the investment philosophy and process used in certain separately managed accounts run by the same portfolio management team. The adviser indicates that security selection is based on a combination of fundamental and quantitative factors, values-based criteria, and risk controls. As an actively managed portfolio, the fund is subject to management risk, meaning that investment techniques and risk analyses may not achieve the desired results.

The ETF is classified as non-diversified under the Investment Company Act of 1940, as amended. This classification allows the fund to invest in securities of a relatively small number of issuers compared to a diversified fund, which can increase exposure to the performance of those issuers. Crossmark also notes that investments in large-cap companies and value stocks are subject to the general risks of equity securities, including market risk and selection risk.

Crossmark emphasizes that the ETF’s values-based screening policies can affect performance. Because certain securities are excluded, the fund may perform differently than strategies that do not apply similar screens. If a company held in the portfolio is later found to violate one or more screening criteria and must be sold, the ETF may incur a loss on that position. The adviser also points out that investors and third-party data providers can differ in their views of what constitutes positive value characteristics, which may lead to holdings that do not reflect the values of every individual investor.

As an exchange-traded fund, the Crossmark Large Cap Value ETF trades on an exchange like a stock. Crossmark notes that ETF shares may trade at prices above or below their net asset value (NAV), and that brokerage commissions and ETF expenses can reduce returns. The fund is subject to a range of risks identified by the adviser, including equity market risk, value stocks risk, market disruption and geopolitical risk, inflation risk, issuer risk, small- and mid-cap companies risk, other investment companies or real estate investment trust risk, focus risk, concentration policy risk, market price risk, small fund risk, and authorized participant concentration risk. These risks are described in more detail in the fund’s prospectus.

Crossmark Global Investments describes itself as a faith-based investment management firm that creates and manages values-based investment strategies for financial intermediaries and their clients. The firm states that it was founded in 1987 and that it is indirectly owned by a non-profit organization, with net income supporting multiple ministry programs. The launch of the Crossmark Large Cap Value ETF, alongside the Crossmark Large Cap Growth ETF, is characterized by Crossmark as its debut in the ETF space, intended to offer accessible, actively managed, values-based investment options.

Key characteristics of Crossmark Large Cap Value ETF (CLCV)

• Actively managed ETF focused on large-cap value securities in the U.S. equity universe.
• Advised by Crossmark Global Investments, a faith-based, values-based investment management firm.
• Uses exclusionary and inclusionary values-based screening criteria, combined with fundamental and quantitative analysis.
• Seeks long-term capital appreciation and aims to outperform the Russell 1000 Value Index.
• Classified as non-diversified under the Investment Company Act of 1940.
• Subject to equity market risk, value stocks risk, and other risks outlined in its prospectus.

Frequently Asked Questions about CLCV

• What is the investment objective of the Crossmark Large Cap Value ETF (CLCV)?
  According to Crossmark Global Investments, the Crossmark Large Cap Value ETF seeks long-term capital appreciation. The fund aims to outperform the Russell 1000 Value Index by investing in large-cap value securities within the U.S. equity universe using an actively managed, values-based approach.
• How does CLCV incorporate values-based investing?
  Crossmark states that the ETF uses an exclusionary and inclusionary values-based screening process. This process can exclude companies with negative business practices or corporate governance concerns and may include companies that, in the adviser’s view, work to reduce risk and build long-term resilience through responsible business practices.
• What benchmark does CLCV seek to outperform?
  The Crossmark Large Cap Value ETF aims to outperform the Russell 1000 Value Index. This index measures the performance of the large-cap value segment of the U.S. equity universe and includes companies with relatively lower price-to-book ratios, lower medium-term growth forecasts, and lower historical sales growth.
• How is the Crossmark Large Cap Value ETF managed?
  The ETF is actively managed by Crossmark Global Investments. The adviser explains that it uses a combination of fundamental and quantitative factors, values-based criteria, prudent portfolio constraints, and risk management tools to identify high-conviction securities, while acknowledging that management techniques may not always produce the desired results.
• What does it mean that CLCV is non-diversified?
  Crossmark notes that the ETF is classified as non-diversified under the Investment Company Act of 1940. This means the fund may invest in securities of relatively few issuers, which can increase sensitivity to the performance of those issuers compared to a diversified fund.
• What are some of the key risks associated with investing in CLCV?
  The fund’s disclosure highlights several risks, including equity market risk, selection risk, value stocks risk, market disruption and geopolitical risk, inflation risk, issuer risk, small- and mid-cap companies risk, other investment companies or real estate investment trust risk, focus risk, concentration policy risk, market price risk, small fund risk, and authorized participant concentration risk. These and other risks are described in the ETF’s prospectus.
• How can the values-based screening affect CLCV’s performance?
  Crossmark explains that the ETF’s screening policies exclude certain securities from the investment universe. As a result, the fund may perform differently than strategies that do not apply similar screens, and it may forgo otherwise suitable investment opportunities. If a holding later violates screening criteria and must be sold, the ETF could realize a loss on that position.
• What type of investors might consider CLCV?
  Based on Crossmark’s description, the ETF is intended for investors who want actively managed exposure to large-cap value securities in the U.S. equity market and who also seek to align their investments with specified values through a defined screening process, recognizing the associated risks and potential performance differences.