Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Schroders

  •   20 February 2025
  •      
  •   

Schroders launches two new Active ETFs in Global Equities and Australian High Yield Credit, expands range

Schroders Australia has launched two new Active ETFs – the Schroder Global Equity Alpha Fund - Active ETF (ASX: ALPH) and the Schroder Australian High Yielding Credit Fund - Active ETF (CBOE: HIGH).

Schroders has expanded its Active ETF suite to four offerings across a diverse set of asset classes, including fixed income, multi-asset, global equities and Australian credit. These funds complement the existing Active ETF’s, the Schroder Absolute Return Income Active ETF (CBOE: PAYS) and the Schroder Real Return Active ETF (ASX: GROW), as they look to expand their listed range further over the year.

As an early pioneer in Australia's active ETF market, Schroders launched GROW on the ASX in 2016, demonstrating its commitment to innovation in investment solutions.

Schroders Australia CEO and CIO, Simon Doyle, says: “For over 60 years in Australia, and over 220 globally, Schroders’ compounded investment knowledge and expertise has helped us to deliver consistent, long-term returns for our local clients. These recent Active ETF launches demonstrate how we continue to position ourselves to meet the needs of investors, providing access to products with successful long-term track records that have not been readily accessible to the wider investor community until now.

“In this era of regime shift and increasingly unpredictable times, we have carefully curated  a suite of products that can benefit investor portfolios. We are excited to bring more Active ETFs to market this year”, Mr Doyle adds.

ASX:ALPH is an unconstrained, diversified global equities fund targeting consistent outperformance with index levels of risk. Its portfolio includes long-term structural opportunities and short-term tactical ideas from a global selection of over 4,000 global stocks. The Fund provides exposure to various countries, industries and styles that adapt through the economic and investment life-cycle.

Natalie Morcos, Head of Product, Solutions and Client Delivery, Schroders Australia, says the underlying strategy has a strong 18-year track record through multiple market cycles.

“Historically global markets have outperformed domestic equities over the longer term, certainly for the last decade. For example, the S&P 500 and the MSCI World have outperformed the S&P/ASX 200 by 8% and 3% per annum respectively over that period.

“The portfolio is made up of our best ideas to drive consistent outperformance, regardless of market conditions. ALPH aims to provide capital growth in excess of the MSCI All Country World Index over a three-to-five-year period.

“While pursuing a style agnostic approach, ALPH tilts to underweight value and overweight quality and growth, targeting companies that have strong growth prospects yet to be recognised by the market.

“ALPH offers attractive pricing with a management fee of 0.65 per cent and no performance fees,” she says.

The second new Active ETF, CBOE:HIGH, invests in domestic corporate and financial credit across sectors, issuers, maturity, ratings grade and capital structure dimensions, including subordinated debt. It combines an attractive yield with the capital protection of institutional grade fixed income.

Ms Morcos says the result is a diversified portfolio of credit securities with the potential to deliver consistent returns above cash and term deposits, while maintaining lower risk and volatility than equities.

“HIGH is an actively-managed credit strategy that seeks to deliver returns of 2.5-to-3.0 per cent a year above the cash rate, before fees, all the way through the cycle.

“HIGH provides access to the traditionally defensive higher-yielding wholesale credit universe and it is suitable for those who are looking for enhanced income solutions beyond conventional equity and cash investments, while avoiding the liquidity constraints of private markets,” she says.

Mr Doyle adds that “The benefits of Active ETFs are better understood by the market today, including accessibility with no minimum investment amount, liquidity and full transparency. Through Schroders Active ETF offerings, investors can access decades of proven active management experience across domestic and global markets.” 

Schroders will be continuing to expand our Active ETF range over 2025 in response to ongoing popularity and client demand. 

Click for more information

 

banner

Most viewed in recent weeks

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

Welcome to Firstlinks Edition 627 with weekend update

This week, I got the news that my mother has dementia. It came shortly after my father received the same diagnosis. This is a meditation on getting old and my regrets in not getting my parents’ affairs in order sooner.

  • 4 September 2025

5 charts every retiree must see…

Retirement can be daunting for Australians facing financial uncertainty. Understand your goals, longevity challenges, inflation impacts, market risks, and components of retirement income with these crucial charts.

Why super returns may be heading lower

Five mega trends point to risks of a more inflation prone and lower growth environment. This, along with rich market valuations, should constrain medium term superannuation returns to around 5% per annum.

The hidden property empire of Australia’s politicians

With rising home prices and falling affordability, political leaders preach reform. But asset disclosures show many are heavily invested in property - raising doubts about whose interests housing policy really protects.

Latest Updates

Investment strategies

Why I dislike dividend stocks

If you need income then buying dividend stocks makes perfect sense. But if you don’t then it makes little sense because it’s likely to limit building real wealth. Here’s what you should do instead.

Superannuation

Meg on SMSFs: Indexation of Division 296 tax isn't enough

Labor is reviewing the $3 million super tax's most contentious aspects: lack of indexation and the tax on unrealised gains. Those fighting for change shouldn’t just settle for indexation of the threshold.

Shares

Will ASX dividends rise over the next 12 months?

Market forecasts for ASX dividend yields are at a 30-year low amid fears about the economy and the capacity for banks and resource companies to pay higher dividends. This pessimism seems overdone.

Shares

Expensive market valuations may make sense

World share markets seem toppy at first glance, though digging deeper reveals important nuances. While the top 2% of stocks are pricey, they're also growing faster, and the remaining 98% are inexpensive versus history.

Fixed interest

The end of the strong US dollar cycle

The US dollar’s overvaluation, weaker fundamentals, and crowded positioning point to further downside. Diversifying into non-US equities and emerging market debt may offer opportunities for global investors.

Investment strategies

Today’s case for floating rate notes

Market volatility and uncertainty in 2025 prompt the need for a diversified portfolio. Floating Rate Notes offer stability, income, and protection against interest rate risks, making them a valuable investment option.

Strategy

Breaking down recent footy finals by the numbers

In a first, 2025 saw AFL and NRL minor premiers both go out in straight sets. AFL data suggests the pre-finals bye is weakening the stranglehold of top-4 sides more than ever before.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.