Lazard Responds to Surge in International Equity Demand with New ETF Launch
- Lazard Asset Management responds to rising demand for international equities, launching the International Dynamic Equity ETF with $422 million in assets.
- The firm's strategic focus includes sectors like European and Asian banks, semiconductor manufacturers, and global gold mining companies.
- Lazard employs a data-driven investment strategy, aligning with market trends to enhance global diversification for investors.
Lazard Asset Management Adapts to Growing Demand for International Equities
In 2025, Lazard Asset Management responds to a notable shift in investor preferences, as demand for international equities surges. Portfolio managers within the firm identify lucrative opportunities across various sectors, including European and Asian banks, semiconductor manufacturers, and global gold mining companies. This trend is largely driven by investors seeking to diversify their portfolios amid high U.S. valuations, geopolitical uncertainties, and the recent weakening of the dollar. The iShares MSCI ACWI ex US ETF serves as a testament to this growing appetite, boasting an impressive nearly 23% return this year, which significantly eclipses the 11% return of the SPDR S&P 500 ETF.
Paul Moghtader, a managing director of the Lazard Advantage Team, plays a pivotal role in this strategic shift. He oversees the newly launched Lazard International Dynamic Equity ETF, which has quickly garnered $422 million in assets and has received a five-star rating from Morningstar. The fund is characterized by a competitive expense ratio of 0.40%, making it an attractive option for investors looking for international exposure. Moghtader emphasizes that the current market volatility and the multifaceted risks present in the global landscape heighten the appeal of international investments. This ETF, trading under the ticker "IEQ," includes significant holdings such as Taiwan Semiconductor Manufacturing, BNP Paribas, Novartis, Tencent Holdings, and Samsung Electronics, reflecting a carefully curated selection aimed at optimizing returns.
Lazard's approach to stock selection is methodical and data-driven, employing a multi-faceted strategy that considers valuation, growth potential, quality, and market sentiment. Key indicators, such as price-to-earnings ratios and balance sheet stability, inform the decision-making process, ensuring that the fund aligns with Lazard's proprietary models. The ETF's focus on sectors like financial services, particularly stocks like BNP Paribas and Japan Post Bank, underscores the firm's commitment to identifying themes that resonate with current market conditions. By concentrating on promising segments such as Canadian gold miners and European financial institutions, Lazard positions itself to capitalize on the shifting dynamics of the global market.
In summary, Lazard Asset Management is well-poised to navigate the evolving landscape of international equities. As investors increasingly seek to mitigate risks through diversification, the firm's strategic focus on high-quality international stocks aligns with broader market trends. With experienced leadership and a robust investment strategy, Lazard is set to enhance its footprint in the global investment arena.
The growing interest in international equities signals a crucial pivot for investors, as they adapt to a landscape marked by volatility and geopolitical tensions. Lazard's proactive approach in launching the International Dynamic Equity ETF illustrates its commitment to meeting evolving client needs in this dynamic market. As the firm continues to refine its investment strategies, it remains focused on harnessing opportunities that arise from global diversification.