Burney US Factor Rotation ETF

BRNY

Market cap $443M

The Burney U.S. Factor Rotation ETF (BRNY) dynamically adjusts its allocation based on market conditions, outperforming most peers despite its short track record. BRNY's portfolio is diversified across market capitalizations and sectors, with a notable overweight in healthcare, financial services, and technology. The fund's valuation is attractive, with a lower P/E ratio than the Russell 1000, driven by core holdings in financials and healthcare.

Actively managed BRNY has a factor-rotation strategy designed to benefit from the "Investment Cycles," including those beneficial for small caps and value or large caps and growth. Its 2024 performance was excellent, and the current mix of growth and value looks markedly more appealing than that of IVV. However, its performance since October 2022 looks much less impressive, highlighting vulnerabilities of its strategy.

The Burney U.S. Factor Rotation ETF (BRNY) aims to capitalize on market phases by predicting and rotating between different market factors like size and style. BRNY's unique strategy involves using alternative data sets and active management to potentially outperform the market, though it comes with higher fees. Despite its innovative approach, BRNY has lagged the S&P 500 ETF since its launch in October 2022, needing more time for evaluation.