Bernstein, the Wall Street research and brokerage firm, has launched two new exchange traded funds (ETFs) – the Bernstein US Research Fund (BERN) and Bernstein Global Research Fund (BRGL) by Exchange Traded Concepts, LLC.
The ETFs will seek to track the Bernstein US Research Index (BERNUSQT) and the Bernstein Global Research Index (BERNGLQT), respectively, which include stocks that are rated “outperform” by Bernstein’s highly regarded research analysts, and are highly rated in the firm’s pioneering quantitative alpha model.
Founded in 1967, Bernstein is widely recognised as one of Wall Street’s premier investment research firms, renowned for its fundamental research approach and in-depth Blackbook reports. Bernstein’s US research has been highly ranked by institutional portfolio managers for more than a decade and its team of 60+ global industry analysts is consistently recognised for having deep industry knowledge and producing top alpha-generating insights. A key to Bernstein’s success has always been its atypical hiring approach – choosing people with a decade or more of experience in the industry they will cover, rather than hiring career research analysts. This fosters a culture of deep fundamental research and has resulted in a long and strong track record of index-beating investment recommendations.
In addition to Bernstein’s fundamental bottom-up research, the firm has been a pioneer in quantitative investment research dating back to the 1970s. Bernstein was one of the first firms to deploy an investment approach that married deep fundamental research with a disciplined quantitative model overlay, long before the term “quantamental” found its way into the popular investing lexicon. Bernstein’s team of quantitative research analysts has access to long proprietary historical data sets that are unmatched by most of its rivals, which allows them to unearth unique patterns and alpha generating opportunities.
“For the past year, we’ve been publishing the results of our research recommendations, including those made as far back as 2004, to hold ourselves accountable and demonstrate to our clients and the market that deep fundamental and quantitative research insights deliver value beyond passive options,” says Robert van Brugge, Chairman and CEO of Bernstein. “Now, with these ETFs, investors can access our insights directly at a competitive price and in a convenient format.”
The ETFs began trading on Cboe Global Markets (BATS) on 17 October, 2017. The ETFs are issued under Exchange Traded Concepts’ (ETC’s) platform and seek to track the published Bernstein indices referenced above.