Trading Central Quant Europe 50 ETF: listed on the LSE

The new accumulation-type UCITS (ISIN IE000DN0XQM1) tracks the Solactive TC Quant EU 50 Index using a five-factor quantitative selection process.

This is a quantitative European equity ETF tracking the Solactive TC Quant EU 50 Index, with a stated Total Expense Ratio of 1 per cent.

The strategy selects 50 European equities through a systematic process based on five factors: growth, value, income, quality and momentum.

Key features of the product

The fund is structured as a reinvestment fund.

The ETF aims to track, as closely as possible, the performance of the index gross of fees and expenses, by investing in the constituent securities in the same proportions as they are represented in the index.

A systematic active approach

The strategy underpinning the product is described as ‘systematic active’: a rules-based, non-discretionary process, with no human intervention or style drift from the benchmark. The portfolio is rebalanced monthly, with continuous reordering of the stock universe based on proprietary data not otherwise available to investors, according to the fund manager.

The investment universe and the five-factor equity selection

The index universe consists of securities belonging to the Solactive GBS EUR All Cap Index that meet minimum market capitalisation and liquidity requirements. Within this universe, eligible securities are assigned a score based on five factor groups: value, growth, quality, momentum and income. Each factor is calculated within the respective country group and the relevant industrial group, selected from the 55 available sectors.

The individual factor scores are combined into a final score ranging from 0 to 100 using weighted averages: 25% each for value, growth and quality, and 12.5% each for income and momentum. The 50 securities with the highest scores are selected, subject to a maximum limit of 17 securities per sector. Should a sector exceed this limit, the securities from that sector with the lowest scores are replaced by eligible securities with the next highest scores from other sectors. The index is equally weighted and is reconstituted and rebalanced monthly.

This methodology, described in the promoter’s documentation, is consistent with what Solactive publicly disclosed at the launch of the TC Quant index family in October 2025, which confirms the same factor group weightings and the same limit of 17 stocks per sector.

The promoter also states that the methodology is based on 27 years of research by Trading Central — consistent with the company’s track record, having been in operation since 1999 — and on over five years of independent performance data, comprising both back-tested and live data. The figure regarding the years of research is therefore consistent with the company’s founding date, whilst the detail regarding the five years of performance data remains a statement by the promoter that cannot be independently verified.

Trading Central’s profile

Trading Central has been active in the financial markets since 1999, with experience in capital markets, asset management and quantitative research. The company is registered with the SEC, SFC and Anacofi and is certified to ISO/IEC 27001:2022, the international standard for information security management.

Equal-weight diversification

The portfolio holds 50 securities, each with a weighting of 2 per cent, totalling 100 per cent. The equal-weight scheme prevents the strategy from becoming heavily concentrated in a small number of stocks and ensures an even distribution of exposure across all positions in the portfolio.

The underlying index: Solactive TC Quant EU 50

The Solactive TC Quant EU 50 index (ISIN DE000SL0R4T6) was launched by Solactive in collaboration with Trading Central in October 2025, alongside its sister indices, the Solactive TC Quant US 50 and Solactive TC Quant CA 50, which cover the US and Canadian markets respectively. The index comprises the European companies with the highest scores according to the TC Quantamental Rating, a proprietary 20-factor model developed by Trading Central.

Fund objectives

The Trading Central Quant Europe 50 Equity UCITS ETF aims to offer systematic exposure to 50 European companies with high scores according to Trading Central’s proprietary methodology, as an alternative to traditional broad-based equity indices based on market capitalisation. The equal-weighting approach and monthly rebalancing distinguish the product from passive ETFs that track cap-weighted indices.

Conclusions

The Trading Central Quant Europe 50 Equity UCITS ETF tracks the Solactive TC Quant EU 50 Index, applying a five-factor quantitative selection process to a basket of 50 European shares, each equally weighted at 2 per cent. The stated TER is 1 per cent.