Expanding Active ETF Range
Schroders Expands Active ETF Range as Assets Reach $3.7 Billion
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Key Points
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Schroders’ UCITS ETF franchise began with its first two active ETFs in September 2025 and had grown to $3.7 billion in assets under management as of Aug. 7, 2026.
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The new funds began trading on Xetra on Sept. 2 and on the London Stock Exchange on Sept. 9. Both are accumulating ETFs that reinvest income and do not provide currency hedging.
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The ETFs are managed by Schroders’ Quantitative Equity Products team and use the MSCI Europe and MSCI Japan indices, measured on a net total-return basis, as their respective benchmarks.
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Tom Stephens described the funds as offering “limited index relative risk, alongside the potential for incremental alpha generation across market environments,” underscoring their positioning as relatively restrained active strategies.
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Schroders said that although U.S. active ETFs can provide significant tax advantages over traditional active mutual funds, they may carry slightly higher tax risks than passive index ETFs.
Schroders, a major global asset manager, is racing into actively managed ETFs with a $3.7 billion fund franchise that launched less than a year ago. The firm announced two new regional equity funds on September 2: the Schroder Europe Equity Active UCITS ETF and Schroder Japan Equity Active UCITS ETF, both charging just 0.25% annually Schroders. These listings mark the fourth and fifth active ETF launches this year, with expansion into Taiwan, Australia, and the U.S. planned before year-end.
The move reflects a seismic shift across the asset management industry. Dimensional, Invesco, Franklin Templeton, and Pictet are all migrating long-standing investment strategies into ETF structures, chasing trillions in client demand for lower-cost, transparent, and liquid products Schroders. Active ETFs in Europe saw net inflows triple to €19.1 billion in 2024, signaling that investors want professional stock-picking without passive index fund costs.
From $1 Billion to $3.7 Billion in One Year
Schroders launched its first two UCITS active ETFs in September 2025. By August 7, 2026, the franchise had swelled to $3.7 billion in assets under management Schroders. The April 2026 launch of the U.S. Equity Active UCITS ETF pushed assets past $2.8 billion, and a January ESG-customized strategy for a Nordic client added further momentum.
The two new funds—Europe and Japan—began trading on Deutsche Börse Xetra on September 2 and on the London Stock Exchange on September 9. Both are accumulating ETFs that reinvest dividends and do not offer currency hedging Schroders. Additional listings are planned for Borsa Italiana and SIX Swiss Exchange.
A 25-Year Track Record Now Wrapped in an ETF
The new funds are managed by Schroders' Quantitative Equity Products team, the same group behind the QEP Global Core strategy, which has operated for over 25 years. That strategy beat its benchmark in 21 out of 26 calendar years Schroders. The team uses a value-and-quality stock-selection approach and measures performance against the MSCI Europe and MSCI Japan indices on a net total-return basis.
Tom Stephens, head of ETFs at Schroders, said the funds offer "limited index relative risk, alongside the potential for incremental alpha generation across market environments" Schroders. In plain terms: they won't deviate wildly from their benchmarks, but they aim to beat them modestly. At 0.25% annually, they're priced like index trackers while offering professional management.
The U.S. Market Offers Massive Tax Incentives
The United States is Schroders' prime target for expansion, and tax efficiency is the reason. Active ETFs can offer significant tax advantages over traditional active mutual funds because of how they're structured Schroders. Jamie Fowler, head of UK Wealth at Schroders, highlighted these structural benefits as a major draw for U.S. wealth managers and institutional clients.
In Europe, the UCITS regulatory wrapper offers fewer tax perks, making geographic expansion a strategy question rather than just a tax play. Still, Schroders acknowledges that active ETFs carry slightly higher tax risks than fully passive index ETFs, though the ongoing gains potential usually justifies the trade-off for investors seeking returns beyond index levels.
Direct Rivals Are Doing the Same Thing
Schroders is not alone in this push. Dimensional Fund Advisors, Invesco, Franklin Templeton, and Pictet are all racing to move proven investment strategies into ETF wrappers Schroders. The shift is being driven by the scale of outflows from high-cost mutual funds and the rising client appetite for ETF transparency and intraday trading.
David Batchelor, senior analyst at QuotedData, noted that these funds appeal as "core regional holdings" because they combine modest active management with ETF accessibility at 0.25% fees QuotedData. For investors tired of plain index trackers but wary of expensive active mutual funds, the active ETF sits in the sweet spot.
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