Schroders has expanded its European active ETF range with the launch of the Schroder US Equity Active UCITS ETF, as assets across its UCITS ETF franchise pass $2.8bn.
The launch adds a US equity strategy to Schroders’ growing active ETF platform in Europe, following the group’s move into the UCITS active ETF market last year with global equity and investment-grade corporate bond strategies. The firm’s range has grown quickly, with Schroders recently moving into the top 10 UCITS active ETF providers by assets.
The new ETF aims to provide capital growth and income in excess of the S&P 500 Index, after fees, over a three-to-five-year period by investing in equities across North America. It will adopt the Schroder QEP US Core strategy and is managed by Lukas Kamblevicius, co-head of Schroders’ Quantitative Equity Products investment team. He said: “The US equity market presents a broad and dynamic opportunity set, where a systematic and disciplined investment approach can help identify consistent sources of return. This strategy – now available in a new ETF wrapper – is designed to deliver a diversified exposure to US equities, with a focus on achieving attractive outcomes for clients over the long term.”
The latest launch comes amid continued momentum in Europe’s active ETF market, where large asset managers are increasingly using the ETF wrapper to offer actively managed strategies alongside traditional mutual fund formats. Schroders said the expansion reflected growing client demand for active exposure through ETFs.
Our view
David Batchelor, senior analyst at QuotedData, said: “Schroders’ latest launch is another sign that active ETFs are moving further into the European mainstream. The interesting point here is not just the addition of a US equity strategy, but the pace at which Schroders has built scale in a relatively short period. For investors, the appeal is clear: active management in a more flexible, transparent and tradeable ETF structure. As more large managers enter or expand in this market, the choice available to European investors is likely to keep broadening”.
