Aberdeen Investments expanded its lineup in the active ETF market with the introduction of two new mutual fund conversions — the abrdn Ultra Short Municipal Income Active ETF (NASDAQ:AMUN) and the abrdn International Small Cap Active ETF (NASDAQ:ASCI).
The newly converted AMUN seeks to provide high after-tax income while maintaining capital. With a net expense ratio of 0.25%, the fund invests heavily in investment-grade fixed income instruments and has an average duration of roughly two years or less.
True to its moniker, AMUN targets the municipal bond market, offering exposure to debt issued by states such as Pennsylvania, Mississippi, New York, and Texas. The fund’s short-duration strategy aims to mitigate interest rate risk while capitalizing on stable yields in high-grade municipal bonds. This launch is well-timed, given investors remain on the lookout for stability in a rate-unpredictable environment.
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The second conversion, ASCI, employs an active strategy for international small-cap equities, offering investors exposure to a sector that is frequently underweight in portfolios. With an expense ratio of 0.70%, the fund seeks long-term growth by investing in stocks with high quality, growth, and momentum characteristics.
The portfolio team anticipates significant exposure to Japan and the U.K., with sector bias toward industrials and information technology. The active approach intends to balance the typical volatility of small-cap and emerging market investments while capitalizing on global growth opportunities.
The double conversions come as Aberdeen’s U.S. ETF business topped $18 billion of AUM for the first time. Jim O’Connor, CEO, Americas, Aberdeen, noted the new ETFs extend access to Aberdeen’s long-standing expertise in municipal fixed income, global small caps, and emerging markets, adding to the firm’s strategy to address changing investor needs by actively managed solutions.
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