Schroders Australia has expanded its active exchange-traded fund (ETF) range with the launch of two new products, bringing its total offering to four active ETFs. This expansion follows the success of the firm’s previous active ETFs and signals continued growth in the company’s product lineup.
New Active ETFs in the Market
The two newly launched ETFs are the Schroder Global Equity Alpha Fund – Active ETF and the Schroder Australian High Yielding Credit Fund – Active ETF. The new products complement the existing Schroder Real Return Active ETF (launched in 2016) and the Schroder Absolute Return Income Active ETF (launched in 2019), doubling the size of Schroders’ active ETF range.
Schroder Global Equity Alpha Fund – Active ETF
The Global Equity Alpha Fund offers an unconstrained, diversified global equities strategy designed to target consistent outperformance with levels of risk comparable to an index. The fund’s portfolio spans over 4,000 global stocks, integrating both long-term structural opportunities and short-term tactical positions.
Schroder Australian High Yielding Credit Fund – Active ETF
The Australian High Yielding Credit Fund focuses on domestic corporate and financial credit across various sectors, issuers, and ratings. The fund also includes subordinated debt, blending attractive yield with the capital protection characteristic of institutional-grade fixed income.
CEO’s Remarks on Strategic Direction
Schroders Australia CEO Simon Doyle emphasized that the new ETF launches reflect the firm’s commitment to offering investors access to products with proven long-term track records. “These launches position us to meet the evolving needs of investors, offering products that have traditionally been less accessible to the wider market,” Doyle said.
He further explained the strategic advantage of active ETFs, noting their appeal in an era of market unpredictability. “We are excited to bring more active ETFs to market this year, providing investors with liquidity, transparency, and access to decades of active management expertise.”
The Growing Popularity of Active ETFs
The active ETF market continues to gain momentum, with investors increasingly recognizing the advantages of these products, such as no minimum investment requirements and full portfolio transparency. Schroders’ new offerings aim to help investors navigate a complex global landscape, providing solutions tailored for both domestic and international markets.
Franklin Templeton’s Recent Launch
Schroders’ announcement comes on the heels of another significant ETF launch in the Australian market, with Franklin Templeton unveiling the Martin Currie Real Income Fund – Active ETF earlier this year. This product, based on the existing Martin Currie Real Income Fund, provides Australian investors with exposure to long-term growth and income-focused assets that are less sensitive to economic fluctuations.
Felicity Walsh, managing director of Franklin Templeton Australia, highlighted that the new ETF complements their existing range, which includes the Franklin Australian Absolute Return Bond Fund and the Franklin Global Growth Fund.
As Schroders and other firms continue to expand their active ETF offerings, Australian investors are gaining access to an increasing range of diversified and flexible investment products designed to meet various financial goals in uncertain times.
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