Robeco launches its first active ETFs in European market

October 16, 2024

3 ETFs based on well-established quantitative and enhanced index capabilities (3D ‘Global’, ‘US’ and ‘European’ Equity ETF)
‘Dynamic Theme Machine’ ETF, capitalizes on cutting-edge next-gen quant research
ETFs listed on Frankfurt Stock exchange as of today, additional listings to follow
All ETFs designed to complement existing investment solutions in mutual funds and mandates

Robeco today announces the European launch of its first suite of active Exchange Traded Funds (ETFs), expanding the firm’s offering of research-based innovative and sustainable investment solutions. The ETFs are listed on the Frankfurt Stock Exchange as of today, with additional listings, including the London Stock Exchange, anticipated in the coming months.

The launch introduces four active ETFs, including three based on Robeco’s quantitative and enhanced index capabilities and one leveraging Robeco’s advanced Next Gen Quant approach. These products complement Robeco’s existing mutual fund and mandate offerings.

Karin van Baardwijk, CEO at Robeco: “Today’s launch marks a pivotal moment for Robeco as we expand our active management expertise into the ETF space. It reflects our strategic commitment to delivering innovative investment solutions that meet the diverse needs of our clients. Our new active ETFs are designed to provide optimized outcomes by combining the structural benefits of ETFs with the added value of active management and sustainability.”

3D ETFs: a smarter alternative in an ETF-wrapper

Robeco’s 3D ETFs build on 20 years of experience with enhanced indexing strategies, which have consistently outperformed. 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 optimization 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.

Nick King, Head of ETF at Robeco: “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.”

Dynamic Theme Machine ETF: capture growth opportunities ahead of the market

Robeco’s Dynamic Theme Machine ETF showcases the company’s next-generation quantitative capabilities, utilizing 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. It uniquely addresses the challenges of traditional thematic ETFs by identifying emerging themes before they become crowded, and dynamically adjusting the portfolio over time.

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 our experienced 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.