Columbia Threadneedle launches CT QR Emerging Markets ETF

Columbia Threadneedle Investments has launched the CT QR Series Emerging Markets Equity Active UCITS ETF, its fourth fund in the CT “Quant Redefined” (QR) Series. The ETF is listed on Deutsche Börse Xetra, the London Stock Exchange and the SIX Swiss Exchange and offers European investors an actively managed route to emerging market equities.

The fund aims to deliver returns through capital appreciation of emerging market stocks and is built on the firm’s quantitative research framework. The investment process uses systematic stock selection intended to be repeatable and rules-based while allowing portfolio managers to apply discretionary oversight.

Portfolio construction evaluates companies across three core themes: Quality, Catalyst and Value. Factor weights are adjusted according to industry-specific return drivers and are refined with proprietary analysis to identify companies with stronger prospects and to avoid firms with weaker outlooks.

The actively managed ETF targets a moderate tracking error of 3 to 5 percent against the MSCI Emerging Markets (NR USD) Index. Tracking error is a measure of how much the fund’s returns may diverge from the index over time.

The UCITS structure means the ETF meets European regulatory requirements for investment funds, and multi-exchange listings make the strategy available to investors trading on Xetra, the LSE and SIX.

Christopher Lo, portfolio manager for the CT QR Series Emerging Markets Equity Active ETF, described the approach as a combination of systematic research and active decision-making to exploit inefficiencies in emerging markets: “Our approach uses systematic research combined with active management to identify companies we believe are best placed to outperform, while avoiding those with weaker prospects.”

Michaela Collet Jackson, head of distribution and marketing, EMEA at Columbia Threadneedle Investments, noted the launch expands the firm’s active ETF range and responds to client demand for transparent, cost-efficient active strategies: “We have seen strong interest in the QR Series since launching our initial Active ETFs last year and are pleased to bring this emerging markets capability to investors across Europe.”