First Eagle Investments continued to grow its active ETF offerings with the introduction of two new U.S.-focused ETFs, the First Eagle Mid Cap Equity ETF (NYSE:FEMD) and the First Eagle US Equity ETF (NYSE:USFE), further capitalizing on the initial success of its entry into the ETF market.
The Tuesday launch follows the company's initial entry into the ETF market just over a year ago, when it launched its first ETFs, the First Eagle Global Equity ETF (NYSE:FEGE) and the First Eagle Overseas Equity ETF (NYSE:FEOE). Since its entry into the market, First Eagle Investments has accumulated around $1.5 billion in ETF assets, according to the company, which indicates a rising trend of interest in actively managed investment offerings in the ETF format.
While FEGE and FEOE target international opportunity sets, FEMD and USFE are specifically designed to target U.S. stocks, both with a value-oriented approach.
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FEMD seeks to invest in the mid-cap universe, identifying companies that the team believes are undervalued by the market. The strategy seeks to identify companies that are candidates for a turnaround, companies with long-term growth prospects despite current earnings difficulties, and companies whose value may not be reflected in their asset base.
USFE seeks to apply the same philosophy to the entire U.S. equity market. The fund employs a bottom-up research process that is inspired by the tenets of long-term value investing, seeking to identify companies with favorable fundamentals that are selling for less than their estimated intrinsic value. Risk management is centered on seeking a "margin of safety" to help protect against both market and company-specific risks.
According to the U.S. wealth solutions leadership at First Eagle, the two new ETFs seek to provide quality, liquidity, and diversification, which are characteristic of the firm's active management philosophy. The firm also highlighted the success of FEGE, which has reached $1 billion in assets in just over a year and continues to expand investor access to its strategies through ETFs.
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