Meet GMOD: GMO's Smart New ETF Built To Power Smarter Multi-Asset Investing

Boston investment firm GMO launched its first multi-asset ETF, the GMO Dynamic Allocation ETF (NYSE:GMOD). The move is a strategic expansion by the company to bring its institutional-quality asset allocation capabilities to a wider base of ETF investors.

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Ben Inker, co-head of Asset Allocation at GMO, said the fund will offer a time-tested approach in an ETF structure that clients increasingly demand.

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A Dynamic, Value-Driven Approach

Underpinning GMOD is GMO’s long-standing view that markets can diverge from fair value but will ultimately return. The ETF seeks to benefit from those cycles by dynamically tilting exposure to asset classes the firm perceives as undervalued, and reducing those that seem overvalued.

The asset mix of the fund will have a flexible range of 40% to 80% equities, with the balance split between bonds and other asset classes. Notably, GMOD’s mandate is not constrained in terms of sector, market cap, or geography, enabling it to shift across global markets.

Portfolio choices are informed by GMO’s proprietary 7-Year Asset Class Forecasts, a bedrock of the firm’s approach that simulates expected returns and risks in asset categories.

Built For Tax-Efficient Flexibility

GMOD provides a solution for investors who are wary of capital gains. John Thorndike, co-head of Asset Allocation at GMO, noted taxable investors may be reluctant to engage in new opportunities for fear of closing out existing positions with built-in gains. To address this, GMOD offers a multi-asset portfolio in one ETF that does the reallocating on behalf of the investor.

This feature may be attractive to long-term investors who want diversified access to GMO’s tactical asset allocation without the drag of multiple rebalancing or taxable events.

GMOD joins GMO's growing suite of ETFs, which includes GMO U.S. Quality ETF (NYSE:QLTY), GMO International Quality ETF (NYSE:QLTI) and GMO Domestic Resilience ETF (NYSE:DRES). Together, these products support GMO’s strategy of bringing its long-established institutional frameworks into ETF structure, providing investors with new instruments for disciplined, valuation-driven global investing.

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