MFS launches two new active ETFs with blended research approach

MFS Investment Management launched two actively managed exchange-traded funds that use the firm's proprietary Blended Research approach, combining fundamental and quantitative investment strategies.

The MFS Blended Research Core Equity ETF (NYSE: BRCE) and MFS Blended Research International Equity ETF (NYSE: BRIE) began trading on the New York Stock Exchange. BRCE invests in U.S. stocks while BRIE focuses on international equities.

Both ETFs aim to outperform their respective benchmarks with targeted tracking error of approximately two percent over a full market cycle. BRCE seeks to beat the S&P 500 Index, while BRIE targets outperformance against the MSCI ACWI ex US Index.

The funds use bottom-up stock selection and portfolio construction processes that blend fundamental and quantitative research to build diversified core equity portfolios, according to the company's announcement.

Four portfolio managers from MFS' Quantitative Solutions group manage the ETFs: James Fallon, Matthew Krummell, Jonathan Sage and Jed Stocks. Krummell serves as lead portfolio manager for BRCE, while Stocks leads BRIE.

MFS began managing quantitatively driven strategies in 2001 and currently manages approximately $21 billion across its Blended Research strategies. The firm offers five U.S. equity mutual fund strategies using this approach, along with international core equity and emerging markets equity strategies.

These represent the seventh and eighth active ETFs launched by MFS, adding to the firm's existing lineup of actively managed exchange-traded funds. As of September 30, 2024, MFS manages $658.7 billion in assets for individual and institutional investors globally.

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