As a giant in asset management known for value investing, GMO is now actively embracing the ETF market to adapt to changes in investor demand.

After launching its first ETF product last year, GMO has attracted over 1 billion dollars in funding, and subsequently launched three new ETFs in October this year; according to media reports, the company plans to launch two more new products early next year.

Many of GMO's mutual funds still require a minimum investment of 1 million dollars, making them accessible only to elite investors. However, the company is now seeking to expand its easy-to-trade, low-cost ETF product line to make them available for the general public.

According to Bloomberg data, about half of GMO's products have outperformed their benchmark indices over the past three years. However, like most fund companies, few products consistently outperform the S&P 500 Index, especially those focused on value stocks, international stocks, or funds managed by fixed income managers.

GMO's first ETF (QLTY) replicates the strategy of its nearly 10 billion dollar fund, the GMO Quality Fund, and the demand from potential clients prompted the company to launch the ETF version of this strategy, with major holdings including Microsoft, Apple, Meta, and Google's parent company Alphabet.

CEO Scott Hayward stated that the company is actively discussing packaging more investment strategies into ETF products. Strategies that have not yet launched ETF versions include the GMO Emerging Markets Bond Fund and the GMO Non-Benchmark Allocation Fund.

Despite launching ETF products that include overvalued technology stocks, GMO still adheres to its value investing philosophy. Co-Head of Asset Allocation Ben Inker stated that in an environment of increasing uncertainty, overvalued growth stocks are more likely to disappoint investors, while undervalued value stocks might outperform expectations.