Differentiation with AI techniques
Established capability to systematically select from the highly diversified global small-cap universe.
Small-cap equities have long been associated with growth potential and diversification, but have been out of favor for much of the past decade. That may be changing, and our new active ETF aims to make the most of the opportunities.
The investment case for small-cap equities
Small caps offer breadth, diversification and structural inefficiencies that systematic investors are well positioned to capture. Our NextGen Global Small-Cap Equity ETF builds on our established quant heritage and enhances it with machine learning, designed to identify deeper patterns within one of equity markets’ most under-researched universes.
While small caps have outperformed large caps over the last 20+ years (see Figure 1), they have been lagging since 2018. However, Figure 1 also reveals that changes in relative valuations between these segments were the main reason for this underperformance.
Figure 1 – Relative performance and valuation of small vs. large caps (Developed Markets)
Past performance is no guarantee of future results. The value of your investments may fluctuate.
Source: Robeco, MSCI, LSEG. The figure shows the relative performance and valuation of the MSCI World Small Cap Index vs. the MSCI World Index. Performance is measured via the total return index (in USD), and the relative valuation is based on four bottom-up-calculated multiples (price-to-book, forward price-to-earnings, price-to-cash EPS, and price-to-dividend). For each multiple, the valuation ratio of the MSCI Small Cap Index is divided by the same valuation ratio for the MSCI World Index. The sample period is March 2003 to December 2025.
NextGen Global Small-Cap Equity ETF
Active ETFs are reshaping global investment markets, offering investors a flexible and transparent way to access active strategies. As adoption accelerates, however, the expanding range of solutions also raises a more practical question: where and how can they add the most value in portfolios?
Targeting small-cap alpha with an ML-based approach
Alpha powered by decades of quant research
Built on Robeco’s long-standing research across various established and next-gen alpha signals.
Additional information edge from ML data
Innovative data-driven models analyze a large number of variables to capture more complex return drivers.
Benchmark-aware, ETF-delivered exposure
The strategy is implemented within clearly defined risk guardrails, including sector and regional constraints and disciplined turnover management. Delivered through an active ETF wrapper, it provides liquid and transparent access to AI-enhanced small-cap exposure, while maintaining moderate tracking error.
NextGen Global Small-Cap Equity UCITS ETF USD Acc
- SFDR (31-5)
- Article 8
- Dividend Paying (31-5)
- No
- Current Price (8-7)
- 5.31
- Inception date (31-5)
Past performance is no guarantee of future results. The value of the investments may fluctuate.
