Since September 11, two new ETFs from Investlinx Investment Management have been tradable on Xetra. We spoke with Samuel Smith, CEO at Investlinx, about the listing on Xetra.

Why create an investment manager focused on active ETFs in 2021?

Because markets are driven by power laws, not averages. Over long periods a small number of exceptional companies create the vast majority of wealth. Passive owns everything and accepts the average. We aim to identify those great businesses with durable advantages and own them with conviction. That requires a long-term, private-equity mindset - deep research, a multi-year time horizon and meaningful capital invested alongside our clients.

What sets you apart from others?

We run genuinely active portfolios that are over 75% different from major indices. We implement simply and transparently - no derivatives, leverage, shorting or securities lending. Our focus on risk begins with knowing what we own: we avoid opaque balance sheets & high R&D-risk and favour strong balance sheets & low leverage. This focus on risk is evident with our maximum drawdown being 20% lower than the global equity market. We deliver this in a modern ETF wrapper with Total Expense Ratios 40% lower than our mutual fund peers in Europe.

Why did you choose to list in Germany on Xetra?

Germany is the largest ETF market in Europe with deep liquidity and a broad investor base across retail and institutional investors. After our 2023 listing on Euronext Borsa Italiana and reaching profitability, expanding to Xetra was the natural next step to make our strategies more accessible. Across both funds we now manage approx. €215 million, making them among the largest high-conviction active ETFs in Europe.

Could you tell us a bit about your solutions?

Investlinx Capital Appreciation UCITS ETF (Ticker: LNXC) - the first fundamental, unconstrained global equity ETF to list on Xetra. We invest in companies exposed to structural growth trends, with sustainable competitive advantages and strong management teams. Since listing, the strategy has delivered 14% on an annualised basis.

Investlinx Balanced Income UCITS ETF (Ticker: LNXB) - the first European actively managed ETF to invest directly in both equities and bonds. Using our proprietary asset-allocation and security-selection process, it targets superior risk-adjusted returns versus traditional fixed income ETFs and alternative asset classes. Since listing, it has delivered 9% on an annualised basis.

So for investors, the choice isn’t binary between low-cost passive and benchmark-hugging active.  There’s a third way now: genuine active investing in a modern ETF wrapper.

Past performance is not a reliable indicator of future results.