International Stocks Are Back. Harding Loevner's New LOEV ETF Wants In
Harding Loevner has entered the ETF market with the launch of the Harding Loevner International Developed Markets Select Equity ETF (NYSE:LOEV). This marks the firm’s first actively managed ETF.
The new fund brings one of the firm’s longest-running international equity strategies into the ETF wrapper, offering investors a tax-efficient way to access developed-market stocks outside the U.S. as demand for active ETFs continues to expand.
The launch comes as asset managers increasingly convert established mutual fund strategies into ETFs to meet evolving investor preferences. While LOEV enters a competitive active international equity space alongside funds such as the Capital Group International Focus Equity ETF (NYSE:CGXU) and the T. Rowe Price International Equity ETF (NYSE:TOUS), Harding Loevner believes its long performance history and disciplined stock-selection process could help differentiate the offering.
Key Features of LOEV
- Expense ratio: 0.70% (70 basis points)
- Underlying strategy: Harding Loevner International Developed Markets Equity strategy
- Primary benchmark: MSCI World ex US Index
- Secondary benchmark: MSCI EAFE Index
- Top Holdings: Banco Bilbao Vizcaya Argentaria, Shell PLC (NYSE:SHEL), ASML Holding NV, Manulife Financial Corporation (NYSE:MFC)
- Holding discipline: Each of the 46 stocks currently has less than 5% weightage assigned to them.
- Track record: Strategy has been offered as a mutual fund since 2010, providing a 16-year performance history
- Investment process: Fundamental research focused on companies with strong management teams, healthy financials, durable growth prospects, competitive advantages, and attractive valuations
- Risk management: Diversification across geographies, currencies, industries and market capitalizations to help reduce volatility
- Tax efficiency: ETF structure offers a more tax-efficient way to access the firm’s established strategy
What The CEO Says
According to chairman and CEO Aaron Bellish, the ETF reflects the firm’s vehicle-agnostic approach to delivering investment strategies.
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