EXUS ETF: A Disciplined Play for Steady International Growth Amid Global Volatility

In a market increasingly prone to whiplash swings, Macquarie's new Focused International Core Equity ETF (EXUS) positions itself as a refuge for investors prioritizing consistency over flash. Launched on June 18, 2025, EXUS aims to deliver steady returns through a concentrated portfolio of 35–45 international stocks with underappreciated growth potential, all managed by a team with a $4.5 billion track record. Its strategy—eschewing high-risk “home runs” for reliable “singles and doubles”—is a deliberate counter to the volatility-obsessed ETF landscape. But does this risk-aware approach justify its concentrated bets?

The Case for Disciplined Active Management

EXUS's core thesis hinges on two pillars: self-sustaining business models and active risk management. The fund targets developed and emerging markets, favoring companies with durable competitive advantages, strong balance sheets, and earnings visibility often overlooked by short-term investors. By concentrating on 35–45 holdings—far narrower than the average ETF's hundreds of stocks—the team aims to maximize conviction in each pick. This focus, however, comes with a trade-off: concentrated portfolios can amplify volatility, as seen in .

The strategy's “style-agnostic” approach means it avoids rigid sector or factor tilts, instead emphasizing stock-specific analysis. This mirrors the philosophy of Senior Portfolio Manager Aditya Kapoor, whose team has delivered a 12% annualized return over five years—outperforming the MSCI World Index by 2.5%—while maintaining lower beta. “We're not chasing trends; we're building a portfolio that can weather cycles,” Kapoor noted in a recent interview.

Navigating Risk in a Fractured World

While EXUS's risk-aware framework is its strength, its explicit risks demand scrutiny. The fund's geographic focus—particularly in Asia-Pacific markets—exposes investors to regional political and economic shocks. For instance, shows how events like currency fluctuations or trade disputes can destabilize returns. Additionally, holding up to 50% of assets in two issuers (with no single stake exceeding 25%) creates vulnerability to company-specific missteps.

Liquidity is another concern. As an active ETF, EXUS trades at market prices, which may deviate from NAV, especially in stressed markets. The appointment of Virtu Financial as liquidity provider aims to mitigate this, but investors should monitor to assess execution costs.

Why EXUS Stands Out

Amid a crowded international equity space, EXUS differentiates itself through three key attributes:
1. Proven Team: Macquarie's Global Equity Team manages $4.5B with a long-term focus, avoiding the churn-driven strategies common in passive products.
2. Active Risk Parity: By minimizing exposure to country-specific risks, the fund seeks to isolate stock-picking alpha.
3. Value Discipline: The portfolio avoids overvalued sectors, instead targeting companies trading at discounts to their intrinsic value.

The fund's expense ratio—though not disclosed in the prospectus—is likely competitive given Macquarie's scale ($588B in assets under management). Yet investors must weigh fees against the potential for active outperformance.

Is EXUS Worth the Risk?

For long-term investors seeking active management in international equities without chasing fleeting momentum, EXUS offers a compelling alternative. Its focus on steady, compounding growth aligns with a world where geopolitical tensions and macroeconomic uncertainty are constants. However, the fund's concentrated nature makes it unsuitable for risk-averse portfolios or short-term traders.

The pending sale of Macquarie's public investments business to Nomura—a deal expected to close by late 2025—adds some uncertainty. Yet the Global Equity Team's independence and track record suggest the transition won't derail the strategy.

Final Take

EXUS is no get-rich-quick scheme. Its appeal lies in its deliberate avoidance of such traps. For investors with a multi-year horizon and tolerance for volatility, this ETF provides a structured way to capitalize on overlooked global growth opportunities. As markets grow more unpredictable, disciplined active management—and the patience it requires—may prove the best defense.

Note: Past performance does not guarantee future results.

Consider EXUS if you're willing to trade headline-grabbing gains for a steadier climb. Just remember: even singles and doubles add up over time.