Indexed ETF strategies provide consistent, cost-effective core solutions for investors looking to build efficient broad market exposure. However, with equity markets volatile and returns expected to be lower over the long term, growth-oriented investors may wish to explore opportunities to seek excess returns as part of a diversified portfolio.
By blending active stock selection with passive index exposure within a robust investment framework, our Research Enhanced Index (REI) Equity Funds and ETFs seek positive alpha at low tracking error, providing a range of highly efficient tools that can be used to complement existing core portfolios, add diversification or to implement tactical views.
A hybrid approach
Our REI approach takes small active positions in stocks based on our proprietary fundamental insights, while also keeping regional, sector and style exposures close to the index at all times to maintain a consistently low tracking error.
The goal is to maximise stock-specific alpha opportunities and to minimise uncompensated market, sector and style risks—all while maintaining a competitive fee.
Seeking alpha in uncertain times
In a lower return environment, active stock selection and efficient index exposure can provide the opportunity to make up any potential return shortfall.
With REI, investors don’t have to choose between passive index exposure and active security selection—they can seek the best of both worlds.
REI solutions for managed fund and ETF investorsETFs Mutual Funds