Touchstone Investments has introduced the Touchstone Dynamic International ETF (TDI), expanding its suite of Distinctively Active® mutual funds and ETFs. The actively managed and fully transparent ETF aims to invest in equity securities of non-U.S. companies across developed and emerging markets, with a focus on capital appreciation. The investment strategy is based on the Los Angeles Capital Management’s Dynamic Alpha Stock Selection Model®, utilizing an adaptive quantitative process that considers evolving market conditions, managing investment risk, and weighing factors based on forward-looking expectations.
The Touchstone Dynamic International ETF is designed to provide investors with a comprehensive framework for international exposure, offering a unique approach to building equity portfolios that adapt to dynamic market conditions. Touchstone Investments, known for its commitment to being “Distinctively Active,” employs a rigorous process for identifying and collaborating with top-tier asset managers to sub-advise its funds. The new ETF joins Touchstone’s existing lineup, aiming to provide investors with a tax-efficient, cost-competitive, and transparent means of accessing the firm’s investment strategies.
Blake Moore, President and CEO of Touchstone Investments, expressed satisfaction with the launch and highlighted the significance of the new strategy in offering investors concentrated exposure in credible markets outside the U.S. The collaboration with Los Angeles Capital Management brings a unique investment process to the market, designed to navigate today’s dynamic market environment.
Daniel Allen, President and CEO of Los Angeles Capital Management, emphasized the importance of bridging the gap between forward-looking fundamental equity management and backward-looking quantitative approaches. The partnership with Touchstone aims to capture investor preferences and provide opportunities for international exposure while building portfolios capable of withstanding challenging market conditions.
The Touchstone Dynamic International ETF’s launch represents a successful conversion from the firm’s Dynamic Allocation Fund, initially announced in July as part of Touchstone’s strategic move to convert a global fund-of-funds into an ETF. The conversion aligns with Touchstone’s goal of offering investors innovative and dynamic investment solutions.