Robeco expands its 3D active ETF range with the launch of the 3D Emerging Markets UCITS ETF. According to the firm, this new fund combines the strengths of Robeco’s quantitative approach with a long-standing track record and experience in emerging markets. The ETF is listed on the London Stock Exchange, SIX Swiss Exchange, Frankfurt Stock Exchange, and Borsa Italiana.
The asset manager believes there is strong momentum among European investors for active ETFs, as they are highly valued for their versatility, performance, and accessibility. “The ETF offers investors a highly attractive alternative to passive ETFs by providing liquid and transparent access to emerging markets equities through Robeco’s proven Enhanced Indexing strategy,” they note.
Regarding the fund, they explain that it leverages a sophisticated quantitative approach to capitalize on the complexities of emerging markets. Its enhanced factor model uses robust metrics, while machine learning and natural language processing (NLP) signals help uncover short-term dynamics, improving the responsiveness of the strategy. The Enhanced Indexing that underpins the ETF allows for many small, yet meaningful, deviations from the index, using risk and ESG indicators to reduce potential downside risks.
“Our 3D active equity ETFs have been very well received by clients, and we have now expanded the range to include emerging markets alongside our current offerings, which provide exposure to developed markets in the U.S., Europe, and the rest of the world. Robeco brings 15 years of experience in managing quantitative emerging markets strategies, as well as in navigating the unique challenges and opportunities they present. Over this time, we’ve built a solid track record, refining our factor definitions and harnessing advances in computing power, machine learning, and natural language processing. With this launch, we are offering our quantitative emerging markets strategy in an efficient, transparent, and accessible format. The ETF strategy will focus on the most liquid stocks to ensure smooth execution, while capturing the unique alpha of this capability,” explains Nick King, Head of ETFs at Robeco.
