The Macquarie Focused International Core ETF (EXUS) seeks to provide concentrated exposure to high-quality international developed market equities outside the United States. This actively managed ETF focuses on a select portfolio of established companies across Europe, Japan, and other developed markets, emphasizing fundamental analysis and quality metrics.
How It Works
EXUS employs an active management approach using fundamental research to select approximately 30-50 high-conviction international stocks from developed markets excluding the U.S. The fund's portfolio managers conduct bottom-up analysis focusing on companies with strong competitive positions, sustainable business models, and attractive valuations. Holdings are weighted based on conviction levels rather than market capitalization, with quarterly rebalancing to maintain optimal position sizing and risk management.
Key Features
- Concentrated portfolio of 30-50 high-conviction international stocks provides focused exposure versus broad-market international ETFs with thousands of holdings
- Active management approach allows for tactical positioning and quality screening unavailable in passive international index funds
- Zero expense ratio during initial launch period offers cost advantage over typical actively managed international funds charging 0.75-1.50%
Risks
- This ETF can lose significant value during international market downturns, potentially declining 40-50% in severe global recessions given concentrated equity exposure
- Currency fluctuations between the U.S. dollar and foreign currencies can reduce returns even when underlying international stocks perform well
- Concentrated portfolio of 30-50 stocks creates higher single-stock risk compared to diversified international index funds holding thousands of companies
Who Should Own This
Best suited for investors with 5+ year time horizons seeking active international equity exposure as a satellite holding representing 10-25% of total equity allocation. Requires medium-to-high risk tolerance due to concentrated portfolio and foreign market volatility. Appropriate for investors wanting professional stock selection in international markets beyond passive indexing strategies.