First Sentier Investors (FSI) has launched its second active ETF on the ASX, offering advisers an ETF version of its Ex-20 Australian Share strategy.
The First Sentier ex-20 Australian Share Fund Active ETF (XX20) will provide advisers and investors with an alternative way to access the $113 million First Sentier ex-20 Australian Share strategy.
FSI said the decision to offer the fund as an active ETF stems from the desire to provide flexible access for advisers to efficiently manage their portfolios.
This aims to deliver higher long-term capital growth by investing in high-quality, small to medium sized companies within the ASX 300, but outside of the ASX 20.
These companies are characterised by strong balance sheets, consistent earnings growth, and improving returns on invested capital – built to compound over time.
Head of Australian equities growth at FSI, Dushko Bajic, said: “XX20 offers access to a dynamic segment of the Australian market and an actively managed portfolio of companies with solid financial foundations and scalable models.
“XX20’s differentiated approach looks beyond the ASX 20 heavyweights such as financials and resources by providing exposure to companies of varying sizes and at different stages in their growth journey. From emerging contenders to established leaders, this segment of the market presents a compelling growth opportunity for investors, with companies we believe are poised to benefit from structural trends, innovation, and expanding market share.”
This is the second active ETF launched by FSI this year as it launched the First Sentier Geared Australian Share Fund Complex ETF in May. This is an ETF version of the First Sentier Geared Australian Share Fund which seeks to deliver long-term growth by actively gearing a range of ASX 100 companies defined by strong balance sheets, ability to grow cash flows, and liquidity.
Recent active ETF launches by fund managers include two from real estate fund manager Quay Global Investors, an Australian equities fund from Ten Cap and three funds from Avantis Investors, all on the ASX.
These are the Quay Global Real Estate Fund (Unhedged) Active ETF , the Quay Global Real Estate Fund (AUD Hedged) Active ETF, Ten Cap Alpha Plus Complex ETF, Avantis Small Cap Value Active ETF, Avantis Global Equity Active ETF and Avantis Emerging Markets Equity Active ETF.
Total ETF inflows stood at $5.9 billion as of end of October, according to Betashares, bringing total funds under management to $321 billion.
