Robeco launches an active small caps ETF based on AI
3 MAR, 2026
By Joanna Piwko from RankiaPro Europe
Robeco has announced the launch of NextGen Global Small Cap ETF, an actively managed exchange-traded fund that applies machine learning techniques to invest in the broad and under-covered global universe of small-cap companies. The firm combines its expertise in quantitative investment with AI technology to offer a data-driven access route to this equity segment.
According to Robeco, the ETF uses machine learning models that dynamically determine which characteristics are relevant for each company within a universe with thousands of values and less analyst coverage. Unlike many active and passive small cap strategies that rely on linear combinations of known factors, the approach of NextGen Global Small Cap ETF seeks non-linear relationships and captures interactions between indicators of different investment horizons.
This design allows adjusting the weights of the indicators at the company level and, potentially, identifying patterns that other models might overlook. Human supervision remains key: Robeco's portfolio managers verify that the model's assumptions are maintained, especially in extreme or unforeseen market environments.
Why small caps and the fit in the portfolio
Global small caps continue to be underrepresented in many portfolios, despite the fact that their profitability drivers differ from those of large companies and their valuations offer, according to the firm, attractive entry points. This segment can act as a diversifier by providing exposure to companies in early stages of growth and less influenced by global macroeconomic dynamics.
The new ETF is part of Robeco's NextGen Quant Program, a research platform launched at the end of 2023 to quickly develop and test innovative quantitative strategies. From this incubator, several solutions ready for marketing have already emerged, such as Dynamic Theme Machine ETF, combining new technological capabilities with the existing intellectual property of the house to accelerate the development of next-generation strategies.
By investing in small-cap companies, the aim is to increase long-term profitability potential and provide diversification benefits. The NextGen Quant team has developed a unique AI-based process to select values from this incredibly broad universe while maintaining disciplined risk management. Structuring this strategy as an ETF makes it efficient and accessible for clients.
Nick King, Head of ETFs at Robeco
The NextGen Quant Program is transforming cutting-edge ideas into real investment strategies that complement our flagship solutions with others that truly stand out to customers. This new active ETF stands out because it applies advanced machine learning to one of the least efficient segments of the market. There are thousands of little-studied small-cap companies, so this universe offers an ideal environment for an AI-based strategy to provide real value.
Mike Chen, Head of NextGen Quant at Robeco
