Schroder US Equity Active UCITS ETF Income USD Lists on LSE

Schroders has expanded its actively managed US equity ETF range with a new income-distributing share class on the London Stock Exchange, complementing the existing accumulation line.

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Article created by the editorial staff of ETFWorld.co.uk

Tom Stephens, Head of ETFs, Schroders

The Schroder US Equity Active UCITS ETF Income USD (ISIN IE00089GGC64) began trading on the LSE on 2 September 2026. It joins the accumulation share class of the same strategy (ISIN IE0003OZJ573, ticker SUSE), which has been listed on the exchange since May 2026. The fund sits within Schroder ETFs ICAV, the firm’s Irish-domiciled umbrella for active ETFs, and carries a total expense ratio of 0.20%. Its objective is to deliver capital growth and income in excess of the S&P 500 Index, after fees, over a three-to-five-year horizon by investing in North American equities and equity-related securities.

Objective and Investment Approach

According to the fund’s documentation, it aims to outperform the S&P 500 Index on a net-of-fees basis over three to five years, though this is not guaranteed. The fund is actively managed and invests at least two-thirds of its assets in a diversified portfolio of North American equity and equity-related securities. Stock selection is driven by two factors: “Value,” assessed via cash flows, dividends and earnings to identify undervalued securities, and “Quality,” evaluated through profitability, stability, financial strength, structural growth and governance.

Eligible Instruments and Limits

The fund may hold common and preferred stock, REITs and partnership interests. Eligible equity-related securities include depositary receipts (American, Global, European and Non-Voting), stapled securities, warrants and rights — though the fund does not typically take active positions in warrants and rights, acquiring them only through corporate actions.

Up to one-third of assets may be held in short-dated government bonds, eligible collective investment schemes (including money market funds and ETFs) and term deposits for cash management. Investment in eligible collective schemes is capped at 10% of assets. REIT exposure is limited to the fund’s weight in the S&P 500 plus 5% of net assets. Within that limit, open-ended REITs are generally treated as collective schemes, while closed-ended REITs are treated as transferable securities, subject to prospectus conditions.

The fund seeks to qualify as an “Equity Fund” for German tax purposes, investing at least 50% of gross asset value in equities. Derivatives — including equity index futures, currency forwards, currency futures and non-deliverable forwards — may be used to reduce risk and improve efficiency, whether exchange-traded or OTC.

Benchmark

Performance is measured against the S&P 500 Index.

Context: Schroders’ Active ETF Expansion

The strategy was first launched in April 2026 as part of Schroders’ push into European active ETFs, a range that had surpassed $2.8 billion in assets by that time, placing the firm among the top ten active UCITS ETF providers. The launch followed Schroders’ first two active ETFs in Europe in September 2025 and an ESG-customised active ETF in January 2026.

The fund runs the Schroder QEP US Core strategy, managed by the firm’s Quantitative Equity Products team. The accumulation share class initially listed on Xetra and Borsa Italiana, with the LSE and SIX Swiss Exchange following shortly after.

At 0.20%, the TER is five basis points below the 0.25% charged on the Schroder Global Equity Active UCITS ETF, reflecting competitive pressure in the active US equity ETF segment, where passive S&P 500 exposure is available at near-zero cost.

Risks

As with any equity ETF, the value of an investment and its income can fall as well as rise, and investors may not recover their original capital. Past performance is not indicative of future results. Active management means holdings and sector weightings may diverge materially from the benchmark, leading to performance that can differ in either direction. Use of derivatives, even for risk reduction, introduces counterparty and operational risk. Currency movements may affect returns for investors outside the fund’s US dollar base currency.

Key Data

Conclusion

The new listing brings the income-distributing share class to LSE investors, mirroring the multi-share-class structure already applied to the accumulation line across Xetra, Borsa Italiana and SIX Swiss Exchange. The move is part of Schroders’ broader active ETF expansion in Europe, which has grown from its first launches in September 2025 to over $2.8 billion in assets by April 2026. Performance will continue to be measured against the S&P 500, with the fund’s active Value and Quality approach intended to differentiate it from passive alternatives at a comparably low cost.

Source: ETFWorld.co.uk