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GMO Launches GMO Beyond China ETF (NYSE: BCHI) Focused on Global Supply Chain Shifts

1. GMO launched the GMO Beyond China ETF, focusing on supply chain shifts. 2. The ETF targets companies in India, Mexico, and Vietnam benefiting from globalization. 3. This strategy aims for long-term gains from emerging market equities. 4. BCHI expands GMO's ETF offerings amid growing global economic changes. 5. GMO emphasizes valuation-driven strategies with a rigorous investment approach.

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Why Bullish?

The ETF's launch could attract investor interest and drive demand for BCHI. Historical launches of new ETFs focused on emerging markets have often led to price appreciation.

How important is it?

The article discusses a new ETF that could influence market perception of BCHI. Given the broad implications for emerging markets, this is a crucial development.

Why Long Term?

The shift in global supply chains suggests prolonged market trends. Such long-term shifts can significantly affect sectors related to BCHI positively over time, similar to past migration away from China.

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BOSTON--(BUSINESS WIRE)--GMO, a global investment manager known for its long-term, valuation-oriented strategies, today announced the launch of the GMO Beyond China ETF (NYSE: BCHI). This actively-managed ETF is designed to capitalize on the significant shift in global supply chains away from China, offering investors exposure to a carefully selected portfolio of companies that GMO believes are poised to benefit from this trend. Building on the success of GMO's existing ETF lineup, BCHI represents a strategic expansion of the firm's investment solutions for a global investor base. "The launch of the GMO Beyond China ETF is the latest example of our commitment to providing innovative, forward-looking investment strategies in accessible formats. This strategy intends to capture the substantial opportunities arising from the realignment of global manufacturing,” said Scott Hayward, Chief Executive Officer of GMO. "We believe we are at the beginning of a multi-year, possibly multi-decade, trend that will reshape the global economy. This isn't just about avoiding China – it's about identifying the countries, sectors, and companies that are benefiting from this secular shift in global supply chains,” said Arjun Divecha, Founder of GMO Emerging Markets Equity. "The GMO Beyond China ETF leverages our proprietary quantitative and fundamental methods to identify emerging market equities in countries like India, Mexico, and Vietnam that are well positioned for the dynamic changes ahead," said Warren Chiang, Portfolio Manager of BCHI. The GMO Beyond China ETF combines GMO’s robust top-down approach to country allocation with thematic insights and bottom-up stock selection in a three-step investment approach. Country selection utilizing GMO's 30 years of expertise in top-down country allocation within emerging market equities, focusing on factors such as demographics, cost competitiveness, infrastructure, macroeconomics, trade momentum, and valuations. Sector and theme identification to target those which stand to benefit most from the shift away from China, including industrial real estate, technology services, consumer plays, and overarching themes like nearshoring, market share gains, and the global capex boom. Stock selection applying GMO's value discipline to identify high-quality companies at reasonable valuations within the selected countries and themes. The GMO Beyond China ETF will hold a portfolio of up to about 100 stocks, focusing on countries such as Vietnam, Mexico, India, Thailand, and Indonesia, which are well-positioned to benefit from the ongoing supply chain shift. The launch of BCHI further expands GMO’s lineup of ETFs, which includes GMO U.S. Quality (QLTY), GMO International Quality (QLTI), GMO U.S. Value (GMOV), and GMO International Value (GMOI). GMO also intends to launch GMO Systematic Investment Grade Credit (INVG) in the near future. More information about GMO's ETFs can be found at: ETF Investing at GMO. The GMO ETFs were launched with the support of the Goldman Sachs ETF Accelerator, a digital platform that enables Goldman Sachs’ clients to quickly and efficiently launch, list, and manage ETFs. About GMO Global investment manager GMO, established in 1977, brings together focused expertise within its investment teams, industry-leading research, and client solutions and service to advance clients' goals. Privately owned and renowned for conviction in a valuation-based, long-term investment philosophy, GMO serves sophisticated institutions, financial intermediaries, and families, and managed $65 billion as of December 31, 2024. The firm is headquartered in Boston, with offices in London, Sydney, Amsterdam, Singapore, and Tokyo (representative office). For more information, visit www.gmo.com. Social Media: LinkedIn: GMO X: @GMOInsights An investor should carefully consider the fund's investment objectives, risks, charges, and expenses before investing. This and other important information can be found in the fund's prospectus. To obtain a prospectus please visit www.gmo.com. Read the prospectus carefully before investing. Risks associated with investing in the Fund may include: (1) Market Risk - Equities: The market price of equities may decline due to factors affecting the issuer, its industries, or the economy and equity markets generally. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares. (2) Non-U.S. Investment Risk: The market prices of many non-U.S. securities (particularly of companies tied economically to emerging countries) fluctuate more than those of U.S. securities. Many non-U.S. markets (particularly emerging markets) are less stable, smaller, less liquid, and less regulated than U.S. markets, and the cost of trading in those markets often is higher than it is in U.S. markets. (3) Currency Risk: Fluctuations in exchange rates can adversely affect the market value of the Fund's non-U.S. currency holdings and investments denominated in non-U.S. currencies. For a more complete discussion of these risks and others, please consult the Fund's Prospectus. The GMO ETFs are distributed in the United States by Foreside Fund Services LLC. GMO and Foreside Fund Services LLC are not affiliated.

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