Jeremy Grantham’s GMO plans its first ETF, a fund that will target quality stocks

Legendary investor Jeremy Grantham’s GMO is planning to offer an exchange-traded fund that will invest in U.S. quality stocks, the firm’s first ETF as it responds to demand in the wealth management industry.

GMO, an investment firm co-founded by Grantham, is preparing to launch the GMO U.S. Quality ETF under the ticker QLTY, according to a prospectus filed Monday with the Securities and Exchange Commission. The actively managed fund will primarily invest in shares of U.S. companies, with the selection of stocks based in part…