Abrdn Inc., the U.S. subsidiary of British asset manager abrdn, has launched the company’s first actively managed exchange-traded funds in the U.S., said a news release Feb. 18.
The two new ETFs, the abrdn Focused U.S. Small Cap Active ETF and the abrdn Emerging Markets Dividend Active ETF, now trade on Nasdaq under the ticker symbols, AFSC and AGEM, respectively.
The abrdn Focused U.S. Small Cap Active ETF invests in a “select group of high-conviction” U.S. small-cap stocks, while the abrdn Emerging Markets Dividend Active ETF focuses on “companies with strong dividend growth and solid fundamentals,” the news release said.
An abrdn spokesperson explained that the two new ETFs are the result of two mutual fund conversions: the Focused U.S. Small Cap Equity Fund and the Emerging Markets Dividend Fund, which were launched in 2004 and 1999, respectively. They currently have assets under management of about $11.9 million and $74.8 million, respectively.
The abrdn Focused U.S. Small Cap Active ETF will continue to be managed Chris Colarik, head of U.S. smaller companies, and Scott Eun, senior investment director; while the Emerging Markets Dividend Active ETF will continue to be managed by Matt Williams, senior investment director, and Gabriel Sacks, investment director. Awais Khan, head of ETF portfolio management and capital markets, was also added as a portfolio manager to these ETFs.
Abrdn now has 10 U.S.-based ETFs, which total about $10 billion in assets under management.
“The demand for actively managed funds has grown at a tremendous rate as investors seek higher-touch, lower cost and tax efficient strategies,” said Jim O'Connor, CEO-Americas, in the release.
Khan noted in the release that "U.S. small caps and emerging markets present compelling diversification opportunities driven by the market's undervaluation. As appetite for dealmaking increases, small caps in particular emerge as a prime target, trading at a discount relative to large caps, and offering significant growth potential.”
The U.K. parent abrdn manages and administers a total of $640.5 billion of assets.
