Robeco has listed its first line-up of active Exchange Traded Funds (ETFs) on the London Stock Exchange.
Its first active ETFs are listed already on the Frankfurt Stock Exchange and on the SIX Swiss Exchange, with additional European listings anticipated in the coming month.
This first offering introduces four active ETFs; three based on Robeco’s quantitative enhanced index capabilities and one leveraging Robeco’s advanced next-gen quant approach. These products complement Robeco’s existing mutual fund and mandate offerings.
Mark Temple Jones, head of Robeco UK said: “The strategic launch of the ETF business is an exciting and important chapter of the Robeco story, both globally and here in the UK. Active ETFs are gaining prominence in the UK market because of their versatility, cost-efficiency and accessibility. Investors are using them for their strategic benefits and embracing them for easier, transparent portfolio diversification and to help them achieve their goals.”
Nick King, head of ETF at Robeco said: “We are pleased to list our newly launched active ETFs on the London Stock Exchange, allowing clients to access our innovative products on this important trading venue. Robeco has a long heritage of active management and is recognised as a leader in sustainable investing.
"The 3D ETFs leverage this expertise to balance performance potential, risk management and sustainability considerations to create compelling building blocks offering an alternative to passive products. The Dynamic Theme Machine ETF is all about being ahead of the curve – using data and AI to spot new themes early and rotating over time, adapting to market changes and capturing growth across a range of evolving sectors.”
Robeco further said its 3D ETFs build on 20 years of experience with enhanced indexing strategies which have consistently performed well. Investors increasingly weigh up sustainability in their investment decisions, but finding the right balance between risk, return, and sustainability requires the right approach.
Focusing solely on sustainability could limit return potential, while ignoring sustainability could expose the portfolio to long-term risks. Here’s where Robeco’s 3D approach uses an optimisation process that aims to balance all three dimensions at once - a portfolio is created that dynamically searches for the best possible trade-offs between them, based on pre-set targets and real-time market conditions.
Robeco’s Dynamic Theme Machine ETF showcases the company’s next-generation quantitative capabilities, utilising advanced Natural Language Processing (NLP) techniques to identify emerging investment themes early. This ETF dynamically adjusts its portfolio to capture growth opportunities ahead of the market, setting it apart from traditional thematic ETFs that often focus on well-established themes, the asset manager said.
The fund "uniquely" addresses the challenges of traditional thematic ETFs by identifying emerging themes before they become crowded, and dynamically adjusting the portfolio over time, it added.
The strategy employs advanced algorithmic techniques to process large amounts of data to identify new themes and relevant stocks. Robeco’s established quant models are utilised to identify optimal entry and exit points. An additional review by its fundamental thematic investing team ensures that the ETF is exposed to the most attractive themes. This dynamic approach is designed to capture growth opportunities ahead of the market and staying agile as conditions change.
