Lazard Transforms Mutual Fund Into IEQ ETF Amid Rising Demand For International Stocks

In a move that indicates faith in the resurgence of global equities, Lazard Asset Management has transformed its International Equity Advantage mutual fund into actively managed ETF, the Lazard International Dynamic Equity Fund IEQ. With this, IEQ joins Lazard’s theme- and region-based ETF suite that includes the Equity Megatrends ETF THMZ, Japanese Equity ETF JPY, and Next Gen Technologies ETF TEKY.

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Launched on Monday, IEQ is not starting from zero. It inherits both the history and portfolio DNA of its mutual fund ancestor, now in the slick, low-cost, and tax-efficient wrapper increasingly favored by investors. The ETF launched with $31.1 million in assets and an expense ratio of 0.40%.

IEQ follows the MSCI All Country World ex-US Index (ACWI ex-US) as its benchmark but seeks to outperform it, not merely replicate it. The fund uses a quantitatively oriented process that combines machine intelligence with fundamental research to create a concentrated, high-conviction portfolio of non-U.S. stocks.

The fund’s strategy resists temptation to lean too heavily in any one direction of investment. Rather, Lazard’s team regularly assesses companies on the basis of valuation, growth, quality, and the way markets are thinking about them.

Rob Forsyth, Lazard's Global Head of ETFs, sees the “pendulum swing back toward international equities,” and investors are taking notice.

Additionally, Lazard Chief Market Strategist Ronald Temple sees a “world of opportunity” outside of the U.S., according to Bloomberg.

IEQ's portfolio includes global powerhouses such as TSMC TSM, Iberdrola IBDRY, Novartis NVS, Alibaba BABA, and Tencent TCEHY, offering exposure across key regions and sectors.

As the ETF market starts to sizzle and international shares return to favour with investors, Lazard is betting that an experienced international strategy with a technology-driven twist is precisely what the market needed. IEQ might be a new ticker tape name, but the strategy playbook that underlies it has been rigorously stress-tested through market cycles — and now it’s taking it global.

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