Westwood Launches Global ETF Aimed at Limiting Exposure to Authoritarian Regimes by Licensing TOBAM Index
Westwood Holdings Group (WHG) has launched the Westwood LBRTY Global Equity ETF (NYSE: BFRE), a new ETF designed to limit exposure to authoritarian regimes while maintaining broad market diversification. The fund employs TOBAM's LBRTY methodology, which systematically reduces exposure to companies vulnerable to autocratic governments.
The ETF operates on two levels: it excludes stocks from nations lacking democratic governance and prioritizes companies in democratic countries with minimal authoritarian regime exposure. The strategy aims to mitigate geopolitical risks and market volatility associated with authoritarian rule, particularly focusing on reducing exposure to countries like China and Russia.
BFRE utilizes multi-dimensional datasets from independent sources to measure global democracy and provides broad market coverage across developed and emerging markets. The fund's approach offers a more comprehensive assessment than traditional exclusion-based strategies, aiming to deliver improved long-term risk-reward outcomes for investors.
Westwood Holdings Group (WHG) ha lanciato il Westwood LBRTY Global Equity ETF (NYSE: BFRE), un nuovo ETF progettato per limitare l'esposizione a regimi autoritari mantenendo una ampia diversificazione di mercato. Il fondo utilizza la metodologia LBRTY di TOBAM, che riduce sistematicamente l'esposizione a società vulnerabili a governi autocratici.
Il ETF opera su due livelli: esclude le azioni di nazioni prive di governance democratica e dà priorità alle aziende nei paesi democratici con minima esposizione a regimi autoritari. La strategia mira a mitigare i rischi geopolitici e la volatilità di mercato associati al governo autoritario, concentrandosi in particolare sulla riduzione dell'esposizione a paesi come la Cina e la Russia.
BFRE utilizza set di dati multidimensionali provenienti da fonti indipendenti per misurare la democrazia globale e offre una copertura di mercato ampia sia nei mercati sviluppati che in quelli emergenti. L'approccio del fondo offre una valutazione più completa rispetto alle strategie tradizionali basate sull'esclusione, puntando a fornire risultati migliori in termini di rischio-rendimento a lungo termine per gli investitori.
Westwood Holdings Group (WHG) ha lanzado el Westwood LBRTY Global Equity ETF (NYSE: BFRE), un nuevo ETF diseñado para limitar la exposición a regímenes autoritarios mientras mantiene una amplia diversificación de mercado. El fondo emplea la metodología LBRTY de TOBAM, que reduce sistemáticamente la exposición a empresas vulnerables a gobiernos autocráticos.
El ETF opera en dos niveles: excluye acciones de naciones sin gobernanza democrática y prioriza empresas en países democráticos con mínima exposición a regímenes autoritarios. La estrategia busca mitigar los riesgos geopolíticos y la volatilidad del mercado asociados con el gobierno autoritario, enfocándose particularmente en reducir la exposición a países como China y Rusia.
BFRE utiliza conjuntos de datos multidimensionales de fuentes independientes para medir la democracia global y proporciona una amplia cobertura de mercado en mercados desarrollados y emergentes. El enfoque del fondo ofrece una evaluación más completa que las estrategias tradicionales basadas en la exclusión, con el objetivo de ofrecer mejores resultados de riesgo-recompensa a largo plazo para los inversores.
Westwood Holdings Group (WHG)는 Westwood LBRTY Global Equity ETF (NYSE: BFRE)를 출시했습니다. 이는 권위주의 정권에 대한 노출을 제한하면서 광범위한 시장 다각화를 유지하도록 설계된 새로운 ETF입니다. 이 펀드는 TOBAM의 LBRTY 방법론을 사용하여 자율 정부에 취약한 기업에 대한 노출을 체계적으로 줄입니다.
ETF는 두 가지 수준에서 운영됩니다: 민주적 거버넌스가 없는 국가의 주식을 제외하고, 최소한의 권위주의 정권 노출을 가진 민주 국가의 기업에 우선 순위를 둡니다. 이 전략은 권위주의적 통치와 관련된 지정학적 위험과 시장 변동성을 완화하는 것을 목표로 하며, 특히 중국과 러시아와 같은 국가에 대한 노출을 줄이는 데 중점을 둡니다.
BFRE는 독립적인 출처의 다차원 데이터 세트를 사용하여 글로벌 민주주의를 측정하고, 선진국 및 신흥 시장 전반에 걸쳐 폭넓은 시장 범위를 제공합니다. 이 펀드의 접근 방식은 전통적인 배제 기반 전략보다 더 포괄적인 평가를 제공하여 투자자에게 장기적으로 개선된 위험-보상 결과를 제공하는 것을 목표로 합니다.
Westwood Holdings Group (WHG) a lancé le Westwood LBRTY Global Equity ETF (NYSE: BFRE), un nouvel ETF conçu pour limiter l'exposition aux régimes autoritaires tout en maintenant une large diversification du marché. Le fonds utilise la méthodologie LBRTY de TOBAM, qui réduit systématiquement l'exposition aux entreprises vulnérables aux gouvernements autocratiques.
L'ETF fonctionne à deux niveaux : il exclut les actions des nations dépourvues de gouvernance démocratique et priorise les entreprises dans des pays démocratiques avec une exposition minimale aux régimes autoritaires. La stratégie vise à atténuer les risques géopolitiques et la volatilité du marché associés à la gouvernance autoritaire, en se concentrant particulièrement sur la réduction de l'exposition à des pays comme la Chine et la Russie.
BFRE utilise des ensembles de données multidimensionnels provenant de sources indépendantes pour mesurer la démocratie mondiale et offre une large couverture du marché à travers les marchés développés et émergents. L'approche du fonds offre une évaluation plus complète que les stratégies traditionnelles basées sur l'exclusion, visant à fournir de meilleurs résultats en termes de risque-rendement à long terme pour les investisseurs.
Westwood Holdings Group (WHG) hat den Westwood LBRTY Global Equity ETF (NYSE: BFRE) aufgelegt, einen neuen ETF, der darauf abzielt, die Exposition gegenüber autoritären Regimen zu begrenzen und gleichzeitig eine breite Marktd Diversifizierung aufrechtzuerhalten. Der Fonds verwendet die LBRTY-Methodologie von TOBAM, die systematisch die Exposition gegenüber Unternehmen reduziert, die anfällig für autokratische Regierungen sind.
Der ETF operiert auf zwei Ebenen: Er schließt Aktien von Ländern ohne demokratische Regierungsführung aus und priorisiert Unternehmen in demokratischen Ländern mit minimaler Exposition gegenüber autoritären Regimen. Die Strategie zielt darauf ab, geopolitische Risiken und die Marktvolatilität zu mindern, die mit autoritärer Herrschaft verbunden sind, insbesondere mit dem Fokus auf die Reduzierung der Exposition gegenüber Ländern wie China und Russland.
BFRE nutzt multidimensionale Datensätze von unabhängigen Quellen, um die globale Demokratie zu messen, und bietet eine umfassende Marktabdeckung in entwickelten und aufstrebenden Märkten. Der Ansatz des Fonds bietet eine umfassendere Bewertung als traditionelle Ausschlussstrategien und zielt darauf ab, verbesserte langfristige Risiko-Rendite-Ergebnisse für Investoren zu liefern.
- Launch of new ETF product expands WHG's investment solutions portfolio
- Innovative strategy addressing growing market demand for geopolitical risk management
- Partnership with established firm TOBAM enhances product credibility
- New product in competitive ETF market with unproven track record
- Strategy may limit investment opportunities in major markets like China
Insights
Westwood's launch of the LBRTY Global Equity ETF (BFRE) represents a strategic product expansion in the increasingly crowded ETF marketplace. The fund's distinctive approach to reducing autocracy-related risks addresses growing investor concerns about geopolitical volatility without sacrificing diversification benefits.
The ETF's two-tiered methodology—excluding stocks from non-democratic nations while prioritizing companies with minimal authoritarian exposure—offers a more sophisticated solution than simple country exclusion strategies. By licensing TOBAM's proprietary LBRTY approach, Westwood gains access to an established quantitative framework without developing costly proprietary systems internally.
This product launch capitalizes on escalating geopolitical tensions, particularly regarding China and Russia, positioning Westwood to capture flows from institutional investors increasingly concerned about authoritarian regime risks. The ETF industry continues seeing strong competitive pressure on fees, however, making it challenging for new products to achieve meaningful assets under management without substantial differentiation.
For Westwood Holdings Group, this represents incremental business development rather than transformative change. While the product demonstrates innovation capability and strategic partnership skills, new ETF launches typically require significant marketing investment and time to achieve scale. Without disclosed fee information or initial funding commitments, immediate revenue impact remains uncertain.
Westwood LBRTY Global Equity ETF (BFRE) Seeks to Reduce Autocracy-Related Risks While Maintaining Broad Market Diversification
DALLAS, March 27, 2025 (GLOBE NEWSWIRE) -- Westwood Holdings Group (WHG), a publicly traded investment management boutique and wealth management firm, today announced the launch of the Westwood LBRTY Global Equity ETF (NYSE: BFRE). The latest Westwood Exchange-Traded-Fund (ETF) offers a distinctive, data-driven approach to global equity investing by seeking to limit exposure to authoritarian regimes while maintaining broad market exposure.
BFRE employs TOBAM’s LBRTY methodology, an innovative approach that aims to generate performance by systematically reducing exposure to companies that can be subjected to the economically irrational, unpredictable and corrupt behavior of autocratic governments. This strategy aligns with investors who prioritize risk management and recognize the long-term economic benefits of investing in countries with strong institutions, civil liberties and rule of law.
BFRE takes a distinctive approach with the goal of reducing the unrewarded risks from countries with oppressive regimes and arbitrary rule while staying aligned with global market benchmarks. This strategy helps mitigate the impact of geopolitical risks and market volatility tied to countries operating under authoritarian rule.
Synthesizing multi-dimensional datasets from independent sources that measure global democracy, BFRE reduces the direct and indirect exposure to authoritarian countries, such as China and Russia. Unlike traditional exclusion-based strategies, this methodology provides a more comprehensive assessment than the simple removal of a country from the investable universe. The approach operates on two levels: at the country level, it excludes stocks listed in nations that lack democratic governance, an independent judiciary and strong civil liberties; at the stock level, it prioritizes companies listed in democratic countries with minimal reliance on authoritarian regimes.
The ETF is designed to provide broad market coverage by including global developed and emerging markets, offering a wider investment scope than many existing alternatives. This design simplifies investment allocation by reducing the need for multiple funds and strategies while providing a dynamic investment option.
“Investors are increasingly seeking solutions that solve for the interconnected nature of global economies. BFRE works to minimize direct and indirect exposure to authoritarian regimes while aligning with investor’s goals and objectives. Traditional exclusion-based approaches often result in unintended exposures and uncompensated risks, whereas BFRE takes a more nuanced and comprehensive approach,” said Greg Behar, Head of Managed Investment Solutions at Westwood. “By systematically assessing both direct and indirect ties to authoritarian regimes, BFRE offers investors a more precise and effective way to reduce exposure while maintaining a well-diversified, global equity portfolio.”
Brian Casey, CEO of Westwood Holdings Group added: “BFRE is designed to offer investors a forward-thinking solution that helps mitigate exposure to the geopolitical risks tied to authoritarian regimes while ensuring alignment with global equity benchmarks. By leveraging TOBAM’s proprietary LBRTY approach, we are providing a strategy that prioritizes financial resilience and democratic investment.”
“Geopolitical risk is coming back with a vengeance, making this a dangerous time to be exposed to autocratic countries” said Yves Choueifaty, CEO of TOBAM and a pioneer in risk factor investing. “BFRE is backed by a wealth of academic research proving the economic superiority of democratic countries. It leverages this research to build sophisticated portfolios designed to improve the long-term risk-reward of our investors by mitigating their exposure to autocratic governments that are prone to destroy value creation.”
TOBAM is an investment management firm running systematic approaches for leading asset owners since 2006. TOBAM is SEC-registered and invented the Diversification Ratio®, which is now part of the Chartered Financial Analyst (CFA) curriculum worldwide.
BFRE’s methodology is rooted in TOBAM’s extensive research, which highlights the long-term financial advantages of investing in democratic markets. Historical data indicates investors in countries with oppressive regimes and arbitrary rules are exposed to unrewarded risks and will underperform in the long run.
For more information on the Westwood LBRTY Global Equity ETF and other investment solutions offered by Westwood, please visit westwoodetfs.com.
ABOUT WESTWOOD HOLDINGS GROUP, INC.
Westwood Holdings Group, Inc. (NYSE: WHG) is a boutique asset management firm that offers a diverse array of actively-managed and outcome-oriented investment strategies, along with white-glove trust and wealth services, to institutional, intermediary and private wealth clients. For over 40 years, Westwood’s client-first approach has fostered strong, long-term client relationships due to our unwavering commitment to delivering bespoke investment strategies with a vehicle-optimized approach, exceptional counsel and unparalleled client service. Our flexible and agile approach to investing allows us to adapt to constantly changing markets, while continually seeking innovative strategies that meet our investors’ short and long-term needs.
Our team at Westwood comes from varied backgrounds and life experiences, which reflects our origins as a woman-founded firm. We are committed to incorporating diverse insights and knowledge into all aspects of our services and solutions. Our culture and approach to our business reflect our core values—integrity, reliability, responsiveness, adaptability, flexibility and collaboration—and underpin our constant pursuit of excellence. For more information on Westwood, please visit westwoodgroup.com
ABOUT TOBAM
TOBAM is an asset management company offering innovative capabilities designed to maximize the benefits of scientific research to build efficient investment exposures. TOBAM’s expertise relies on 3 core pillars:
- TOBAM’s Maximum Diversification® approach, supported by original, patented research and a mathematical definition of diversification, provides clients with diversified core exposure, in equity and fixed income markets.
- TOBAMSolutions®, a research driven division, dedicated to building customized solutions and services for sophisticated institutional investors.
- A LBRTY® strategy, which aims to help investors substantially mitigate their exposure to autocratic regimes in their portfolio.
- In line with its mission statement and commitment to diversification, TOBAM also launched a satellite activity (CRYPTOBAM®) on cryptocurrencies in 2017.
For more information, please visit www.tobam.fr or tobamdirect.com
| Media Contact for Westwood and U.S.-based inquiries: | Media Contact for TOBAM and Europe-based inquiries: |
| Tyler Bradford Hewes Communications 212.207.9454 tyler@hewescomm.com | Charlotte Walsh JPES Partners +44 (0)20 7520 7620 charlotte.walsh@jpespartners.com |
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FAQ
What is the investment strategy of Westwood's new BFRE ETF?
How does the Westwood LBRTY Global Equity ETF (BFRE) screen for authoritarian exposure?
Which markets does Westwood's BFRE ETF cover?
What specific risks does Westwood's BFRE ETF aim to reduce?
