Eurizon SLJ Capital Lists Its First Emerging Markets Equity ETF on the LSE: Three Share Classes in Euros, Pounds and Dollars

Why It Matters

The product gives investors active, concentrated exposure to emerging‑market equities with currency flexibility, expanding the limited pool of actively managed EM ETFs in Europe.

Key Takeaways

• First EM equity ETF from Eurizon SLJ Capital.
• Targets 30 top-quality emerging market stocks.
• Three share classes: EUR, GBP, USD.
• Management fee set at 0.80%.
• Active ETF market in Europe grew to $32.9bn.

Pulse Analysis

Eurizon SLJ Capital’s entry into the London Stock Exchange marks a notable shift in the active emerging‑markets space. While most EM equity funds track broad indices such as MSCI, the new “Magnificent 30” ETF concentrates on a curated basket of the thirty highest‑quality stocks, blending macro‑driven sector tilts with bottom‑up company analysis. This approach aims to capture upside from the most resilient issuers while limiting exposure to the volatility that can plague broader EM indices. For investors seeking active management and a tighter risk profile, the product offers a differentiated alternative to traditional passive ETFs.

The fund is housed within the Connect ETFs ICAV platform, an Irish‑registered structure that provides segregated liability and streamlined access to UCITS service providers. By offering three share classes—euro‑denominated for eurozone investors, sterling‑denominated for the UK market, and dollar‑denominated for those comfortable with US currency exposure—Eurizon addresses the currency‑risk concerns that often deter EM investors. The accumulation share class automatically reinvests income, eliminating the need for dividend‑distribution decisions. With a competitive 0.80 % management fee and Citi handling administration, custody and depositary functions, the operational framework is built for efficiency and investor confidence.

The launch arrives at a time when Europe’s active ETF sector has exploded from roughly $6.1 billion in 2015 to $32.9 billion by the end of 2023, according to ETFbook data. Eurizon’s move expands the limited pool of actively managed EM equity products, potentially attracting capital from institutional and retail investors looking for higher‑alpha opportunities. As emerging markets continue to benefit from improving macro fundamentals, a focused, actively managed vehicle could outperform broader benchmarks, especially in a volatile global environment. The ETF’s success will likely influence other asset managers to consider similar concentrated, multi‑currency offerings.