Robeco Launches Active Emerging Markets ETF with Quantitative Edge
25 APR, 2025
Robeco has launched the 3D Emerging Markets UCITS ETF, a new active equity strategy that aims to give investors smarter access to emerging markets. Listed on major European exchanges, the ETF blends Robeco’s quantitative expertise, enhanced indexing framework, and a sustainability-focused approach—offering an alternative to traditional passive strategies.
A Quant Strategy Built for Emerging Markets
The new ETF is powered by Robeco’s 15-year track record in emerging markets (EM) quant investing and applies its proprietary Enhanced Indexing strategy in a UCITS-compliant, liquid, and transparent format. According to Robeco, this approach has historically delivered strong alpha with a modest tracking error and outperformed peers with a realized information ratio of over 1.2.
Robeco’s strategy goes beyond generic factor exposure. Instead, it uses a combination of machine learning, natural language processing (NLP), and tailored risk models to navigate EM volatility and data limitations.
With this launch, we’re making our EM quant strategy available in a format that’s efficient, transparent, and easy to access.
Nick King, Head of ETFs at Robeco.
The strategy also benefits from collaboration between Robeco’s quant team and fundamental EM specialists, allowing it to stay grounded in real-world local market dynamics. This hybrid insight helps the ETF capture inefficiencies in markets that are typically less efficient and more retail-driven.
Smart, Sustainable, and Diversified Exposure
The 3D Emerging Markets UCITS ETF is designed to provide broad regional and intra-regional diversification, taking advantage of the structural dispersion in EM. Unlike developed markets, EM countries like India, Brazil, and Taiwan often move independently, offering uncorrelated sources of return that quant strategies can systematically exploit.
We’re much less likely to suffer from a value downturn across all these markets at the same time
David Blitz, Chief Researcher
Importantly, sustainability is the ETF’s third “dimension.” Rather than applying static exclusions, the ETF dynamically integrates ESG considerations into its portfolio construction. The aim is to strike a balance between risk, return, and sustainability, helping investors manage long-term risks while gaining exposure to sectors leading the global transition toward a more sustainable future.
With its listing on the London Stock Exchange, SIX Swiss Exchange, Frankfurt Stock Exchange, and Borsa Italiana, the ETF offers daily liquidity, cost efficiency, and exposure to a screened universe of highly liquid EM stocks. It targets a tracking error of around 1.5% and a turnover rate of about 50%, balancing agility with cost control.
