L&G is listing its global multifactor equity ETF, developed in collaboration with the renowned German passive investment expert, on the London Stock Exchange.
Article created by the editorial staff of ETFWorld.co.uk
Giancarlo Sandrin, Deputy Head of Europe – Wholesale
The fund, with assets under management of over €995 million, combines global exposure, factor investing and ESG filters in a single solution.
The product
The L&G Gerd Kommer Multifactor Equity UCITS ETF (ISIN: IE0001UQQ933, WKN: WELT0A) has a Total Expense Ratio (TER) of 0.45% per annum and assets under management exceeding €995 million. The fund is managed by Legal & General Asset Management, the UK-based asset manager which, as at 31 December 2025, had $1.586 trillion in assets under management globally, ranking ninth among the world’s largest institutional managers.
Today’s listing on the London Stock Exchange (LSE) represents a further step in the gradual expansion of this ETF’s distribution across European markets. The fund was originally launched on 21 June 2023 on Xetra and the Frankfurt Stock Exchange, and has since become available on Euronext and the SIX Swiss Exchange, before listing on the London Stock Exchange today.
Who is Gerd Kommer
Gerd Kommer is an asset manager and author of several bestsellers, including *Souverän investieren mit Indexfonds und ETFs*. He studied business administration, tax law, political science and German in Germany, the United States and Liechtenstein (M.A., MBA, Dr. rer. pol., LL.M.).
For over 23 years he has been writing guides on investing with index funds and ETFs, and has been working in the financial sector for 30 years. His philosophy is based on scientific findings and the efficient market hypothesis: he believes that active stock selection and market timing do not lead to sustainable success in the long term, favouring instead broadly diversified index funds and ETFs.
The benchmark index
The fund tracks the Solactive Gerd Kommer Multifactor Equity Index NTR, an index designed to provide exposure to developed and emerging equity markets globally, with weights determined according to a dual quantitative criterion.
Countries are weighted 50% by market capitalisation and 50% by Gross Domestic Product (GDP). This mechanism aims to reduce the so-called cluster risk of the US market, which currently accounts for over 60% of the total in traditional indices.
In addition to the hybrid geographical weighting, each security is assigned exposure to the following five factors:
• Value: measured using price-to-book, price-to-earnings and enterprise value/EBITDA;
• Quality: determined by asset turnover, profitability, debt coverage ratio and return on assets;
• Size: smaller-cap companies receive a higher score;
• Momentum: recent relative performance of the security;
• Investment: change in total assets compared to the previous year.
Security selection is carried out exclusively on the basis of mechanical rules derived from scientific research, carefully defined within the index structure. This is an approach that Kommer defines as ‘integrated multi-factor 2.0’.
Portfolio and diversification
The fund comprises a total of 4,271 securities, of which 4,238 are equities. The top ten holdings — Deutsche Telekom, Taiwan Semiconductor, Micron Technology, Apple, NVIDIA, Meta Platforms, Mastercard, Visa, Microsoft and Netflix — together account for just 9.17% of total assets, a low level of concentration compared to most global equity ETFs.
The replication method is physically optimised (representative sampling): the fund invests in an optimised portfolio of equities that, as far as possible, mirrors the composition of the index in the corresponding proportions. The use of quantitative techniques helps to reduce overall transaction costs.
ESG filters
The index applies defined exclusion criteria. Securities of companies are excluded if they:
• do not comply with the United Nations Global Compact;
• involved in serious controversies with significant impacts on the environment and society;
• with any direct involvement in controversial weapons;
• active in thermal coal mining, coal-fired power generation or related products/services;
• with a high carbon intensity score.
The fund falls under Article 8 of the SFDR, promoting a range of environmental and social characteristics.
The context: factor investing and the European ETF market
Factor investing is essentially a form of passive investment, meaning the abandonment of active stock picking and market timing in favour of statistically identifiable return factors. This approach, also known as smart beta, has become established over the last two decades thanks to extensive academic literature documenting its long-term robustness.
Listing on the London Stock Exchange — one of the most liquid and accessible regulated markets in Europe — broadens the pool of investors potentially interested in the product, including UK and international institutional investors who use the LSE platform as a preferred point of access.
| Name | L&G Gerd Kommer Multifactor Equity UCITS ETF |
| ISIN | IE0001UQQ933 |
| SEDOL | BSY3W48 |
| Currency | USD |
| Management Fee | 0.45% |
| Benchmark | Solactive Gerd Kommer Multifactor Equity Index NTR |
Source: ETFWorld.co.uk
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