Today, Aberdeen Investments expanded its selection of active ETFs with two new mutual fund conversions.
Tackling Muni Momentum
First on the docket is the abrdn Ultra Short Municipal Income Active ETF (AMUN). The fund’s goal is to provide high after-tax income consistent with capital preservation. The fund has a net expense ratio of 25 basis points.
AMUN focuses its investments toward investment-grade fixed income securities, thus true to the fund’s title. Traditionally speaking, the fund’s portfolio team looks to hold an average effective duration of about two years or less.
When it comes to choosing munis to invest in, AMUN may invest in securities of any state, county, city, or governmental entity. That said, AMUN’s portfolio team subsequently anticipates the fund to hold noticeable exposure to munis from Pennsylvania, Mississippi, New York, and Texas.
Active Approach to Small-Caps
Meanwhile, the new abrdn International Small Cap Active ETF (ASCI) can tap into rising international equity demand. The fund looks to generate long-term growth through a focus on international small-caps. It has a net expense ratio of 0.70%.
ASCI can offer a potent niche in a portfolio, given how many are woefully underexposed to the international small-cap market. Furthermore, the fund’s active management can help blunt the risk that would traditionally come from investing in international small-caps.
To choose stocks to invest in, ASCI’s portfolio team scrutinizes companies based on quality, growth, and momentum. This is done to zero in on high-quality companies that are accordingly displaying strong momentum to deliver returns over the coming years.
To pursue its investment objectives, ASCI may invest in countries or sectors of any kind, including limited emerging markets exposure. That said, ASCI’s portfolio team currently expects the fund to hold strong exposure to Japan and the U.K. In terms of sector exposure, the fund anticipates heavy exposure to the industrials and information technology sectors.
Growing Opportunities for Aberdeen
These fund conversions come online at a crucial time for the Aberdeen team. Recently, Aberdeen’s U.S. ETF franchise passed the $18 billion AUM threshold for the first time, significantly showcasing the strength and reliability of Aberdeen’s fund lineup.
“Crossing $18 billion in assets underscores the strength and scalability of our U.S. platform,” noted Jim O’Connor, CEO, Americas at Aberdeen. “These ETF conversions mark a pivotal step in our evolution, expanding further the access of our investment partners to Aberdeen’s deep expertise in municipal fixed income, international small caps, and emerging markets. This milestone reflects the momentum we’ve built, the trust investors place in Aberdeen’s differentiated approach, and our ongoing commitment to meeting the evolving needs of our clients.”
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