Pictet Asset Management just added three funds to a 2025 that’s seen a record number of actively managed ETF launches: the Pictet AI Enhanced International Equity ETF (PQNT), Pictet Cleaner Planet ETF (PCLN), and Pictet AI & Automation ETF (PBOT).
It will be the Geneva-based firm’s first foray into the U.S. ETF market, but certainly not its first when it comes to asset management. The firm has a built an over 200-year history marked by innovation and stability. Additionally, it has a strong market presence in Europe. Pictet hopes to carry that success over into the U.S.
“The launch of our first U.S.-listed ETFs represents a significant milestone in bringing Pictet’s institutional investment heritage to advisors and investors,” said Elizabeth Dillon, CEO of Pictet Asset Management (USA).
Pictet's Funds
All three funds target specific market segments, “megatrends,” that have been attracting investors. They also incorporate their own unique strategies, including the use of AI-driven quantitative and thematic screeners:
- PQNT seeks to outperform the MSCI EAFE Index. It uses an enhanced index strategy with a low tracking error to invest in international equities. Additionally, it uses an AI model to screen for opportunities. The model incorporates over 250 features engineered from a broad set of market data. These include company fundamentals, analyst sentiment, prices, and market activity.
- PCLN invests in the securities of “Cleaner Planet” companies. This includes global companies that contribute and/or benefit from the structural change of a more sustainable economy. This includes companies with a distinct environmental and/or social impact objective using fundamental metrics (sales, EBITDA, enterprise value, Capex, etc) that contribute positively to activities like energy efficiency, renewable energy, pollution control, water supply & technology, sustainable buildings, waste management & recycling, sustainable agriculture & forestry, circular economy, dematerialized economy, or enabling technologies and infrastructure that support sustainability objectives.
- PBOT invests in companies that have a distinct link to AI and/or automation as measured by the company’s fundamental metrics (sales, EBITDA, enterprise value, Capex, etc). These contribute to and benefit from the value chain in AI, robotics, cybersecurity, semiconductors, and software. The fund will also include companies that produce essential hardware and services, as well as those providing technologies that enable robots to sense, process, communicate, and act. Finally, it includes companies that redefine, optimize and automate enterprise workflows, companies that change the way society interacts with each other, and those that develop robotics and automation solutions aimed at improving consumers’ everyday lives.
“These strategies embody our 220-year commitment to independent thinking and pioneering investment strategies built upon robust research," Dillon said. “They are designed as durable portfolio building blocks that reflect our forward-looking approach to emerging technologies like artificial intelligence and our deep investment expertise in global megatrends.”
Active and Innovative
The active management strategy employed by each fund adds inherent benefits. These can mitigate idiosyncratic risks associated with the aforementioned market segments. Active ETFs offer a higher degree of market flexibility versus their passive peers, because they aren’t tethered to an index. In times of uncertainty, Pictet’s portfolio managers can adjust the holdings of the funds to mitigate downside risk. Additionally, they can capture upside when these markets trend higher.
Furthermore, the use of AI speaks to the firm’s commitment in bringing innovative strategies to the market. This is a discerning feature that could distinguish Pictet from other U.S.-based active managers. For example, PQNT uses an aforementioned AI model designed to maintain transparency and factor-neutrality compared to the market.
“PQNT brings our AI enhanced international equity strategy, that was previously only available to our institutional clients, to U.S. advisors for the first time. The strategy seeks to deliver consistent active outperformance without the black-box approach of many quantitative strategies,” said David Wright, Head of Quantitative Investments at Pictet Asset Management.
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