New York Life Investment Management has launched the NYLI International Small-Mid Cap Equity ETF (NYSE:NISM), a new actively managed ETF aimed at giving investors exposure to international small- and mid-cap companies outside the U.S. The ETF comes as investors increasingly look for diversification opportunities beyond crowded U.S. large-cap and AI-driven trades.
The fund will be managed by New York Life Investment Management. According to the firm, the ETF uses a four-stage investment framework that combines macroeconomic analysis, regional and sector positioning, bottom-up stock selection, and risk-aware portfolio construction.
Key Features of NISM
- Invests primarily in non-U.S. small- and mid-cap equities
- Targets companies with market caps ranging from about $500 million to $35 billion
- Portfolio expected to hold 50 to 100 stocks
- Nissan Chemical Corporation, TMX Group Ltd, Centrica Plc and TDK Corporation are among its holdings
- Each holdings in the portfolio carry less than 2.5% weightage, making it an equal-weighted ETF
- Expense ratio: 0.70%
- Uses a research-driven active management strategy
- Focuses on long-term capital growth and valuation-driven opportunities
The launch arrives amid growing investor interest in international equities as valuations in U.S. mega-cap technology stocks remain elevated. New York Life Investment Management said the strategy builds on Ausbil's established global small-cap investing platform, which focuses on identifying companies with underappreciated earnings growth potential and attractive valuations.
Kirk Lehneis, head of U.S. Retail at New York Life Investment Management, said international small- and mid-cap equities may offer compelling long-term opportunities for investors seeking diversification beyond both U.S. stocks and large-cap names.
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