abrdn Launches First Active ETFs
Rhea-AI Summary
abrdn has launched its first actively managed ETFs in the U.S., expanding beyond its existing $10 billion ETF business in passive commodities and precious metals. The two new ETFs trading on NASDAQ are: the abrdn Focused U.S. Small Cap Active ETF (AFSC) and the abrdn Emerging Markets Dividend Active ETF (AGEM).
AFSC seeks capital appreciation through high-conviction U.S. small-cap stocks, while AGEM targets total return via income and long-term capital growth, focusing on companies with strong dividend growth and solid fundamentals. The funds will be managed by existing investment teams, including Chris Colarik, Scott Eun, Matt Williams, and Gabriel Sacks, with Awais Khan joining as Head of ETF Portfolio Management and Capital Markets.
The company cites growing demand for actively managed funds as investors seek higher-touch, lower cost, and tax-efficient strategies. Management views U.S. small caps as particularly attractive, noting they trade at a discount relative to large caps and offer significant growth potential.
Positive
- Expansion into active ETF market, complementing existing $10 billion passive ETF business
- Entry into potentially undervalued U.S. small-cap and emerging markets segments
- Leveraging existing experienced investment teams for new ETF products
Negative
- None.
Insights
The launch of abrdn's first active ETFs marks a strategic pivot that could significantly impact their market position and revenue potential. The decision to enter the active ETF space with small-cap and emerging market strategies is particularly well-timed, addressing two underserved market segments with substantial growth potential.
The U.S. small-cap focused ETF (AFSC) launches at an opportune moment, as small-caps currently trade at notable discounts to large-caps, creating potential arbitrage opportunities for active managers. The increasing M&A activity in this space could serve as a catalyst for value realization, making active management particularly valuable for identifying prime acquisition targets.
The emerging markets dividend ETF (AGEM) represents a sophisticated approach to EM investing, combining both income and growth potential. This strategy is especially relevant in the current market environment where investors seek quality dividend-paying stocks in developing markets as a hedge against developed market volatility.
The transparent active ETF structure offers several advantages over traditional mutual funds:
- Lower operational costs and improved tax efficiency
- Intraday liquidity and trading flexibility
- Greater transparency in holdings and strategy implementation
This product launch significantly enhances abrdn's competitive positioning in the U.S. market. Building upon their $10 billion ETF business, these active offerings could attract substantial inflows from both institutional and retail investors seeking specialized exposure with professional management. The integration of established investment teams with dedicated ETF expertise suggests a well-thought-out operational structure that could support future active ETF launches.
abrdn expands passive Commodity and Precious Metal ETF suite with the launch of two new actively managed ETFs in U.S. small caps and emerging markets
PHILADELPHIA, PA / ACCESS Newswire / February 18, 2025 / abrdn Inc., the U.S. business of the global specialist asset manager, today announced the launch of two new fully transparent active ETFs, trading on the NASDAQ: the abrdn Focused U.S. Small Cap Active ETF (NASDAQ:AFSC) and the abrdn Emerging Markets Dividend Active ETF (NASDAQ:AGEM).
The abrdn Focused U.S. Small Cap Active ETF seeks capital appreciation by investing in a select group of high-conviction U.S. small-cap stocks, while the abrdn Emerging Markets Dividend Active ETF targets total return through income and long-term capital growth, focusing on companies with strong dividend growth and solid fundamentals.
The launch marks the introduction of abrdn's first actively managed ETFs in the U.S., providing access to two of the firm's flagship investment capabilities, building upon its existing
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. The Emerging Markets Dividend Active ETF will continue to be managed by Matt Williams, Senior Investment Director, and Gabriel Sacks, Investment Director. These existing investment teams will be further strengthened by the addition of Awais Khan, CFA, Head of ETF Portfolio Management and Capital Markets as a portfolio manager to the funds.
Jim O'Connor, CEO, Americas, said: "The demand for actively managed funds has grown at a tremendous rate as investors seek higher-touch, lower cost and tax efficient strategies. These two new funds mark the first phase of our commitment to offering world-class investment solutions, combining our expertise in active management with our existing passive ETF solutions in commodities and precious metals. We look forward to engaging advisors and investors on how active management in these specialized asset classes can help diversify portfolios and improve client outcomes."
Awais Khan, CFA, Head of ETF Portfolio Management and Capital Markets, said: "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. We are excited to build on the strong track records of the EM Dividend Fund and U.S. Small Cap Focused Fund by offering active ETFs within these niche markets, further unlocking long-term value for investors."
For more information on abrdn's active ETF suite, please visit Active ETFs | abrdn
Ends
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In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.
Notes to editors
About abrdn
abrdn is a global investment company that helps clients and customers plan, save and invest for the future. Our purpose is to enable our clients to be better investors.
abrdn manages and administers
$640.5 b n of assets for clients (as of 31 December 2024).Our strategy is to deliver client-led growth. We are structured around three businesses - Investments, Adviser and Personal - focused on their changing needs.
The capabilities in our Investments business are built on the strength of our insight - generated from wide-ranging research, worldwide investment expertise and local market knowledge.
Our teams collaborate across regions, asset classes and specialisms, connecting diverse perspectives and working with clients to identify investment opportunities that suit their needs.
As of 31 December 2024, our Investments business manages
$463.0b n on behalf of clients - including insurance companies, sovereign wealth funds, independent wealth managers, pension funds, platforms, banks and family offices.
abrdn.com
Investors should carefully consider the investment objectives, risks, fees, charges, and expenses of an ETF before investing. The summary and full prospectuses contain this and other information about the ETF and should be read carefully before investing. To obtain a prospectus for the ETF, contact us at 1-844-383-7289 or download it from this site.
Investing in ETFs involves risk, including possible loss of principal. There is no assurance that the investment objective of any fund will be achieved. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. As a result, an investor may pay more than net asset value when buying and receive less than net asset value when selling. In addition, brokerage commissions will reduce returns. Fund shares are not individually redeemable directly with the Fund but blocks of shares may be acquired from the Fund and tendered for redemption to the Fund by certain institutional investors in Creation Units.
The value of a security may decline for reasons directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services. The stock or other security of a company may not perform as well as expected, and may decrease in value, because of factors related to the company, to the industry in which the company is engaged, or to the market as a whole. The Fund is subject to the risk that the Adviser or Subadviser may make poor security selections. Funds that invest a greater proportion of their assets in the securities of a smaller number of issuers will be subject to greater volatility with respect to their investments than funds that invest in a larger number of securities. Securities of smaller companies are usually less stable in price and less liquid than those of larger, more established companies. Therefore, they generally involve greater risk.
abrdn Inc. has been registered as an investment adviser under the Investment Advisers Act of 1940 since August 23, 1995. In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.
abrdn's exchange-traded funds are distributed by ALPS Distributors, Inc. ALPS is not affiliated with abrdn.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
EAF000109 3/30/26
SOURCE: abrdn Inc.
View the original press release on ACCESS Newswire
FAQ
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