U.S. Global Investors Announces Share Buyback Numbers for December 2023; Provides an Update on Competitive Year-End Performance for Quant Gold ETF
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Insights
Share buybacks can be a strategic move for a company, signaling management's confidence in the firm's value and future prospects. In the case of U.S. Global Investors, Inc., the repurchase of nearly double the shares compared to the previous month suggests a strong belief by the company's leadership that the stock is undervalued. This action often aims to increase earnings per share (EPS) by reducing the number of shares outstanding, which can be appealing to investors as it may indicate potential stock price appreciation.
Moreover, the performance of the GOAU ETF is noteworthy. Ranking in the top decile among peers is a significant achievement and speaks to the effectiveness of the ETF's investment strategy. The mention of a 'smart-beta 2.0' approach indicates an advanced investment methodology that combines elements of both active and passive management, potentially offering investors a more refined tool to gain exposure to precious metals equities. This could attract more investors to the fund, increasing its assets under management and potentially benefiting the company’s financial performance.
The emphasis on the 'smart-beta 2.0' approach of the GOAU ETF underscores a growing trend in the ETF industry towards more sophisticated investment strategies. Smart-beta ETFs are designed to outperform market-cap-weighted indexes by using alternative index construction rules based on factors such as volatility, dividend yield and others. U.S. Global Investors' approach, which involves a rigorous, quant-based model, may appeal to investors seeking differentiated products in a crowded marketplace.
Additionally, the company's success in this area could indicate a competitive edge in the specialized sector of gold equities. As the market for precious metals can be influenced by various macroeconomic factors, such as inflation and currency fluctuations, the strong performance of GOAU may reflect well on the company's research capabilities and investment selection process. This could enhance the company's reputation among investors, potentially leading to increased demand for their other investment products.
San Antonio, TX, Jan. 12, 2024 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with longstanding experience in global markets and specialized sectors, today is pleased to announce that it repurchased 93,907 of its own shares in December 2023, at a net cost of almost
“The Company believes its stock is undervalued and therefore buys back shares of GROW stock when the price is flat or down from the previous trading day,” says Frank Holmes, the Company’s CEO and Chief Investment Officer. “In last year’s letter to shareholders, Warren Buffett highlighted the value proposition of buying back one’s own stock at ‘value-accretive prices.’ Doing so, Buffett says, benefits all shareholders, not just the biggest holders. We agree.”
A Strong 2023 for GOAU, the Smart-Beta 2.0 Gold Equities ETF
The Company is also pleased to announce that its gold equity ETF, the U.S. Global GO GOLD and Precious Metal Miners ETF (NYSE: GOAU), ended 2023 in the top decile among 69 Equity Precious Metals funds for the 12-month period, according to Morningstar data. These results are based off of total return and net asset value (NAV).
“I couldn’t be happier with how well GOAU performed in 2023 relative to its peers,” Mr. Holmes continues. “The fund is based on approximately 10,000 hours of research to create its unique model and approach to investing in gold equities. As designed, GOAU is a rigorous and robust, smart-beta 2.0, quant-based ETF, meaning it combines passive investing with characteristics that some investors might associate with active investing. Unlike many of its peers, for example, GOAU is highly selective about what companies are included. Every quarter, we use quantitative stock-picking factors to help select high-quality gold stocks, which we rank based not just on market cap but also on financial value factors. Whenever a company dilutes these factors, it’s kicked out of the ETF. GOAU rebalances and reconstitutes each quarter.”
About U.S. Global Investors, Inc.
The story of U.S. Global Investors goes back more than 50 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides investment advisory services to U.S. Global Investors Funds and U.S. Global ETFs.
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Please carefully consider a fund’s investment objectives, risks, charges, and expenses. For this and other important information, obtain a statutory and summary prospectus for GOAU by clicking here. Read it carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns.
Because the fund concentrates its investments in specific industries, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. The fund is non-diversified, meaning it may concentrate more of its assets in a smaller number of issuers than diversified funds.
The fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. The fund may invest in the securities of smaller-capitalization companies, which may be more volatile than funds that invest in larger, more established companies.
The performance of the fund may diverge from that of the index. Because the fund may employ a representative sampling strategy and may also invest in securities that are not included in the index, the fund may experience tracking error to a greater extent than funds that seek to replicate an index.
The fund is not actively managed and may be affected by a general decline in market segments related to the index. Gold, precious metals and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than
Morningstar rankings are based on a fund's average annual total return relative to all funds in the same Morningstar category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The Fund was ranked
Fund holdings and allocations are subject to change at any time. Click to view fund holdings for GOAU.
Distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment adviser to GOAU.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. A smart-beta ETF is a type of exchange-traded fund that uses a rules-based system for selecting investments to be included in the fund.
FAQ
What is the stock repurchase announcement by U.S. Global Investors, Inc. (NASDAQ: GROW)?
Who highlighted the undervaluation of the stock and the benefits of share buybacks?
How did the U.S. Global GO GOLD and Precious Metal Miners ETF (NYSE: GOAU) perform in 2023?
