Westwood Launches Global ETF Aimed at Limiting Exposure to Authoritarian Regimes by Licensing TOBAM Index

Core Insights - Westwood Holdings Group has launched the Westwood LBRTY Global Equity ETF (BFRE) aimed at reducing risks associated with authoritarian regimes while ensuring broad market diversification [1][2][3] Investment Strategy - BFRE employs TOBAM's LBRTY methodology to systematically minimize exposure to companies affected by the unpredictable behavior of autocratic governments, aligning with investors focused on risk management [2][6] - The ETF's strategy helps mitigate geopolitical risks and market volatility linked to authoritarian countries, while maintaining alignment with global market benchmarks [3][6] Methodology - BFRE synthesizes multi-dimensional datasets to assess global democracy, reducing exposure to authoritarian countries like China and Russia through a two-level approach: excluding stocks from non-democratic nations and prioritizing companies in democratic countries [4][7] - This methodology offers a more comprehensive assessment than traditional exclusion-based strategies, focusing on both country and stock levels [4][6] Market Coverage - The ETF is designed to provide extensive market coverage, including both developed and emerging markets, simplifying investment allocation and offering a dynamic investment option [5][6] Investor Demand - There is a growing demand among investors for solutions that address the interconnected nature of global economies, with BFRE aiming to minimize exposure to authoritarian regimes while aligning with investor goals [6][7]