Robeco Launches NextGen Global Small-Cap Equity UCITS ETF on LSE

The fund is also available on Deutsche Börse Xetra under the ticker RGSC .

The actively managed ETF invests in small-cap companies across developed markets. It uses a quantitative stock selection model enhanced with machine learning, which Robeco refers to as its “NextGen” approach .

Strategy and AI Integration

The fund applies a systematic, data-driven process designed to identify investment opportunities within the global small-cap universe. The model incorporates established return factors including value, quality, momentum, low volatility, and analyst revisions. An artificial intelligence overlay using machine learning techniques then refines the selection process.

Robeco’s research indicates that small-cap markets present specific opportunities for quantitative strategies due to limited analyst coverage and broader market dispersion. According to the firm’s analysis, small-cap stocks have historically offered higher factor premiums compared to large caps, though with increased volatility .

The machine learning component aims to capture complex, non-linear relationships in market data that traditional linear factor models might miss. Historical simulations conducted by Robeco suggest that ML models can improve the accuracy of stock classification compared to generic factor models alone .

Benchmark and Active Management

The fund’s benchmark is the MSCI Global Small Cap Index (Net Return, USD). As an actively managed ETF, the portfolio may include stocks outside the benchmark and deviate significantly from benchmark weightings. The investment manager applies a Value-at-Risk (VaR) ratio limit to control relative risk, which constrains the level of performance deviation from the benchmark over time.

Sustainability Profile

The fund is classified as Article 8 under the SFDR. It explicitly considers a company’s contribution to the United Nations Sustainable Development Goals (SDGs) as part of the investment process. The objective is to achieve sustainable characteristics alongside financial returns.

Fund Details

The ETF uses a full physical replication method and accumulates income. The total expense ratio (TER) is 0.50 per cent. The fund was authorised by the Central Bank of Ireland on 28 January 2026 and is structured as a sub-fund of Robeco UCITS ICAV . Robeco Institutional Asset Management BV acts as the management company, with J.P. Morgan SE, Dublin Branch serving as depositary .

The launch expands Robeco’s UCITS ETF range, which includes other quantitative and thematic equity strategies.