Harding Loevner Enters ETF Market With LOEV for International Investors
Harding Loevner, a 35-year-old institutional asset manager, has launched its first ETF under the ticker LOEV, with an expense ratio of 0.69%—23 times higher than the cheapest competitor. The fund targets high-quality stocks in developed markets outside the U.S.
Key Numbers
A 35-year-old institutional powerhouse just made its first move into the ETF market, betting that quality stock picking in developed markets abroad can justify a fee 23 times higher than its cheapest rival.
Details
The firm launched the Harding Loevner International Equity ETF (ticker: LOEV), which trades on the New York Stock Exchange. The expense ratio is 0.69%, significantly above the average passive international ETF fee of around 0.03%.
The fund follows an active investment strategy focusing on high-quality companies in developed markets outside the United States. Harding Loevner currently manages over $100 billion in institutional assets.
Context
The launch comes amid a booming ETF market, with investors increasingly favoring low-cost funds. However, active funds still attract capital when they deliver outperformance.
What This Means for Investors
LOEV offers a new option for international investors seeking institutional-quality active management, but they will pay a significant premium over passive funds. The fund's success hinges on Harding Loevner's ability to generate excess returns that justify the higher fee.
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