Macquarie Asset Management launches low-cost active ETFs

Macquarie Asset Management (MAM) has launched two ultra low-cost systematic active ETFs on the ASX that seek to enhance returns over index performance.

The ETFs will endeavour to outperform the index by combining data science and human intelligence.

The Macquarie Core Australian Equity Active ETF (ASX: MQAE) offers investors access to a portfolio of around 200 ASX shares in a single trade, with a management fee of 0.03% p.a. and a performance fee of 20% of outperformance of the benchmark.

The Macquarie Core Global Equity Active ETF (ASX: MQEG) includes around 400-500 systematically selected global shares in a single trade., with a management fee of 0.08% p.a. and performance fee of 20% of outperformance of the benchmark.

MAM ETF investment strategist Blair Hannon said the actively managed ETFs can work well as long term core portfolio allocations, as they aim to deliver consistent excess returns.

"There's still a role for passive investing at the core, but systematic active ETFs provide investors with the potential for better returns. This is because we don't just follow an index, we start with it, and add a systematic process that seeks to enhance returns over index performance," he said.

Macquarie Systematic Investments (MSI) co-head Scot Thompson said systematic investing provides the opportunity for a view on every company in an investible universe.

"Our aim with these new ETFs is to build a stable, more risk aware and balanced fund portfolio with significantly reduced impact from human bias," he said.

Meanwhile, MSI co-head Benjamin Leung emphasised the systematic investment team's careful consideration of the number of stocks held, their weights, and potential outcomes from a risk and exposure perspective.

"We've built a naturally adaptive mechanism so it can adjust to opportunities and risks as they emerge," he said.

The launch of these new products is a response to investor demand for institutional-quality portfolio building blocks, MAM said.

"... investors are looking for more efficient portfolio construction tools and Macquarie's new range of core active ETFs offer investors access to leading systematic investment capabilities via the ASX," MAM said.