Main Management has launched a new actively managed ETF delivering a global non-US equity strategy.
The ETF seeks to outperform its global ex-US benchmark over a full market cycle while consistently delivering lower risk.
The Main International ETF (INTL US) has been listed on Cboe BZX Exchange with an expense ratio of 1.20%.
Day-to-day management of the fund is overseen by Kim Arthur, CEO; James Concidine, Chief Risk Officer; J. Richard Fredericks, Managing Director; and Alex Varner, Director of Research.
The ETF seeks to outperform the MSCI All Country World ex-USA Index over a full market cycle by allocating towards regions, countries, and sectors that stand out as favourable based on valuations and growth prospects.
The strategy is implemented using third-party ETFs with INTL expected to hold between five and 20 ETFs within its portfolio at any time.
Main utilizes a dynamic approach to asset allocation, first employing a top-down macroeconomic assessment to identify potentially undervalued economic regions, countries, and sectors.
The firm then turns to microeconomic and fundamental factors to assess whether a region, country, or sector is expected to undergo a transformative change that could lead to near-term price appreciation.
Once the strategic asset allocation is set, Main monitors market conditions on an ongoing basis, deploying tactical allocations as needed to respond to opportunistic shifts.
Main will also aim to keep the ETF’s risk profile below that of its benchmark. In doing so, Main may shift up to 20% of the ETF’s assets into cash and short-term fixed income instruments during challenging market conditions or may employ covered call strategies that serve to dampen overall portfolio volatility while also generating income.
According to Main, INTL may serve as a supplement to core US equity, providing access to an alpha-seeking global ex-US strategy while maintaining sufficient diversification through broad ETF exposures.