Vontobel Makes Active ETF Debut With New International Fund

“Vontobel’s International Equity strategy has delivered a consistent, high-quality approach for nearly 40 years,” said Jared Buell, head of US Intermediary for Vontobel Asset Management. “The debut of Vontobel’s first active ETF marks an exciting milestone and reflects our commitment to meeting investors’ needs in an evolving investment landscape.”

VNIE aims to offer long-term capital appreciation for its investment community. The fund has a net expense ratio of 60 basis points, following a fee waiver. 

Primarily, VNIE looks to invest in equities that are part of the Morgan Stanley Capital International All Country World ex US Index. This index focuses on mid- and large-cap companies from developed and emerging markets. In terms of market exposure, up to 30% of the fund’s net assets may be invested in companies tied to emerging markets. 

When choosing which companies to add to its portfolio, VNIE’s management team uses a bottom-up approach. By doing so, the fund looks to build a portfolio with a focus on quality companies at a reasonable price. 

At the very least, 75% of the fund’s total assets will be invested in non-U.S. companies. Given the current volatility of the U.S. market, this international exposure could be more valuable than ever. Along with the benefits of diversification, international equities can give investors new routes to build capital appreciation. 

While international equities can seem risky to some, VNIE offers extensive market experience through active management. Through the active ETF wrapper, VNIE’s team can be in a better position to adapt to changing macroeconomic conditions. 

“Vontobel is a successful global financial services company,” noted Todd Rosenbluth, head of research at VettaFi. “It is great to see them bring their equity market expertise to support U.S.-based advisors looking overseas.”

For more information, please visit VettaFi.com | ETF Trends.