Robeco has expanded its actively managed ‘3D’ equity suite with the launch of an emerging market ETF.
The Robeco 3D Emerging Markets UCITS ETF (REM3) is listed on the London Stock Exchange, SIX Swiss Exchange, Frankfurt Stock Exchange and Borsa Italiana with a total expense ratio (TER) of 0.30%.
While REM3 was one of the five ETFs which received approval from the Central Bank of Ireland (CBI) last September, its belated arrival owes to the additional time required for operational setup in some of its target exposures, Robeco told ETF Stream.
Like other ‘enhanced index’ active ETFs offered by the firm and its peers, REM3 integrates a “quant approach” to inform its broad allocation to emerging market equities.
Robeco added the ETF also employs machine learning and natural language processing (NLP) to better respond to short-term market dynamics.
Nick King (pictured), head of ETFs at Robeco, commented: “Robeco has 15 years of experience running quant EM strategies, managing the unique challenges and opportunities that these present. Over this time, we have established a very strong track record, refining our factor definitions and leveraging advancements in computing power, machine learning and natural language processing.
“With this launch, we are making our EM quant strategy available in a format that is efficient, transparent, and easy to access. The ETF strategy will focus on the most liquid stocks to ensure a smooth execution whilst capturing the unique alpha of this capability.”
The arrival of REM3 takes the firm’s ‘3D’ suite to five strategies seeking to actively balance risk, return and sustainability considerations.
King previously told ETF Stream that the Dutch asset manager would move beyond equities in 2025 but will not venture into passive management with its nascent ETF range.
“We want to be a multi asset platform, so fixed income is going to be the next area of focus moving into 2025.”
“The passive market is extremely competitive and already well-served by existing products. It is important for us to concentrate on areas where we can truly add value, and that’s in the active space.”
