KAT vs SEIV

KATDScharf ETF

SEIVASEI QiM U.S. Large Cap Value Active ETF

In short

KAT A concentrated take on value: roughly 40 quality names, US and international, bought at discounts to what Scharf's team thinks they're worth. This is the firm's long-running mutual fund strategy, now in an ETF wrapper.

SEIV Active quant value stock-picking at an index-fund price. SEIV screens U.S. large caps for cheap valuations plus quality, momentum and low volatility, then runs a concentrated book of roughly 80 names for 0.15% a year.

Stated mandate

KAT The Fund seeks long-term capital appreciation. It primarily invests in equity securities, principally those of mid- and large-capitalization companies, while retaining authority to invest in fixed-income securities and other assets.

SEIV The Fund seeks long-term capital appreciation through primarily U.S. common stocks priced below fundamental valuation measures, using a quantitative, active stock-selection approach.

Why people hold it

• KAT Genuinely concentrated and genuinely active: about 40 holdings, so each pick carries real weight, unlike index value funds spread across hundreds of names.
• The mandate travels. US and international equities, mid- and large-cap, with prospectus authority to hold fixed income and other assets when the manager wants dry powder.
• Not a blank-slate launch. The strategy converted over from Scharf's mutual fund with a record dating to 2016, and reached the ETF market at several hundred million in size.etftrends.com

• SEIV 0.15% a year for genuine active selection, against a 0.55% median in its U.S. value peer group. It matches the cheapest large-value quant funds rather than charging active prices.
• Value is not the only screen. The model also weighs quality, momentum and low volatility, which is how a cheap-stock strategy tries to avoid the cheap-for-a-reason trap.
• Other funds measured against the S&P 500 in this cohort charge far more (LSVD 0.40%, GSPY 0.50%, VNSE 1.34%). SEIV runs its version at 0.15%.
• Sits among the strongest implementations in a crowded U.S. value field, and trades with enough regular activity to be workable for ordinary retail order sizes.

Worth knowing

• KAT Active pricing: 0.75% a year, above the 0.55% median for its active value peers and several times the 0.15% at AVLV or 0.12% at WTV.
• Thinly traded for its category, so bid-ask spreads tend to run wider and fills less tidy than in the value aisle's giants.
• Concentration cuts both ways. With about 40 names and one team's judgment behind them, results can wander a long way from broad value benchmarks.

• SEIV About 80 stocks measured against a 500-name benchmark. That concentration means stretches where it looks nothing like the S&P 500, in either direction.
• Launched in 2022, so the live record is short, and the asset base is mid-sized rather than among the giants of the value aisle.
• You get the factor recipe, not the trade-by-trade logic: selection sits inside a quantitative model. Distributions land quarterly, not monthly.

Full KAT profile⁠

Full SEIV profile⁠