“What was really important for us was to round out the product line,” Piré said. “We’re bringing to market a strategy that’s novel for the U.S. equity market where we’re essentially bringing over from France a strategy that’s been very popular.”
Specifically, MVIN focuses on developed markets and try to generate long-term capital appreciation with less volatility than typically experienced by international equity markets. The minimum volatility approach helps diminish portfolio risk. Lower-risk stocks have historically offered better risk-adjusted returns than high-risk stocks from 1995 through 2015, according to Natixis.
The more recently launched LSST is supported by Loomis Sayles’ global research platform, which combines top-down macroeconomic analysis with bottom-up security selection. The Loomis Sayles Short Duration Income ETF will try to achieve current income consistent with preservation of capital by investing in fixed-income securities such as bonds, notes and debentures, as well as other investments, with an average duration between one and three years.
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