The Lazard International Dynamic Equity ETF (IDEQ) seeks to provide long-term capital appreciation through active management of international equity securities outside the United States. This actively managed ETF employs Lazard's proprietary research and portfolio construction methodology to identify undervalued companies across developed and emerging international markets.
How It Works
IDEQ uses an active management approach where Lazard's portfolio managers conduct fundamental analysis to select international stocks they believe are trading below intrinsic value. The fund employs a concentrated portfolio strategy, typically holding 40-80 positions across various market capitalizations and sectors. Portfolio managers can adjust geographic and sector allocations based on market conditions and investment opportunities, with rebalancing occurring as needed rather than on a fixed schedule.
Key Features
- Active management by Lazard's experienced international equity team with over 30 years of global investment expertise
- Concentrated portfolio approach allows for higher conviction positions compared to broad international index ETFs
- Recently launched ETF structure may offer limited performance history but provides access to established Lazard strategy
Risks
- This ETF can lose value if Lazard's stock selection proves incorrect, as active management may underperform passive international index funds
- Currency fluctuations can significantly impact returns when foreign holdings are converted back to U.S. dollars, adding volatility beyond stock movements
- International markets face geopolitical risks, regulatory changes, and economic instability that can cause sharp declines exceeding 40% during global crises
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 their equity allocation. High risk tolerance required due to active management risk and international market volatility. Appropriate for investors wanting professional stock selection rather than passive index exposure in international markets.