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How discount buybacks can enhance value strategies in an active ETF

ETF Trends highlights Tweedy, Browne’s Insider + Value ETF, which targets companies conducting opportunistic buybacks or insider purchases to reflect value discounting versus intrinsic worth.

Reported · Written up by our desk · ETFs

ETF Trends examines how share buybacks can factor into value investing, noting that companies repurchase their own stock to shrink the share count and potentially make valuations more attractive.

The outlet says buybacks done below intrinsic value can effectively increase value for remaining shareholders, framing them as a form of “mini M&A” because each repurchased share represents management acquiring an ownership stake at a discount.

ETF Trends also points to Tweedy, Browne’s approach, citing Jay Hill, managing director at the firm, and describing the philosophy behind the Tweedy Browne Insider + Value ETF (COPY), an actively managed fund.

According to the article, COPY aims to identify long-term growth opportunities within value investing by looking for insider momentum, including opportunistic share buybacks and insider purchases, as value strategies gain traction during the year.

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