Intangible value as a new factor in ETFs

The podcast episode discusses the concept of intangible value and how it is an important factor in evaluating stocks. Intangible assets like intellectual property, brand equity, human capital, and network effects are becoming increasingly important for companies today. Traditional value investing, which primarily focused on tangible assets, fails to capture the value of these intangible assets. The podcast introduces the Intangible Value ETF (ITAN) that seeks to capture the value of intangible assets using a combination of accounting-based metrics and alternative data sources. The ETF selects stocks based on their intangible value and weights them using a modified market cap weighting. The episode also discusses the correlation between intangible value and other factors like quality and the potential for this factor to explain the outperformance of certain stocks and sectors.