Lazard Non-Dollar Active Income ETF (XDLR)
XDLR is an actively managed ETF designed to generate high yield and diversify currency risk through fixed income opportunities beyond the US dollar.
An Income Opportunity Beyond the US Dollar
XDLR is built to enhance a fixed income allocation and capitalize on potential US dollar weakness—seeking yield above that of core fixed income, drawing on a return driver independent of US interest rates and credit cycles, and using short duration to help limit interest rate sensitivity.
High Yield Potential
XDLR seeks a high yield from emerging markets (EM) local currency bonds, drawing on the elevated interest rates found across EM economies.
Enhanced Return Potential
Exposure to non-US dollar currencies can provide an additional source of return as the US dollar cycle shifts.
Differentiated Risk Profile
Currency depreciation is the principal trade-off, offset by diversification away from the risks traditionally associated with high income—credit risk (as in high yield bonds), duration risk (as in long-dated bonds), and illiquidity (as in private markets).
Why Now: Navigating the US Dollar’s Next Stage
We believe the US dollar cycle may weaken, creating a constructive backdrop for currency diversification.
- Four flat years of dollar strength suggest the current cycle may be nearing exhaustion.
- Global reserve managers are gradually broadening exposure beyond the US dollar.
- High US yields support the dollar today but also raise fiscal pressure risks over time.
As of 30 September 2026. REER is the BIS real broad effective exchange rate (2020=100); average is the Dec 2001–Jul 2026 mean. Source: Federal Reserve Economic Data (FRED).
Our Philosophy
- Mispricing Opportunities
EM local debt mispricing creates opportunities for alpha generation. - Country Risk Assessment
Understanding sovereign fundamentals is essential to distinguishing attractive yields from inadequately compensated risks. - Income and Diversification
High real yields and diverse economic cycles offer differentiated sources of income.
From Global Forces to Sovereign Conviction
A structured monthly cycle comprising three sequential, iterative steps.
1
Global Macro Analysis
We assess the global macroeconomic, financial, and geopolitical environments to form views on global rates and the broad US dollar.
2
Sovereign Analysis
We examine country risk—the defining characteristic of EM—across two lenses: currencies and rates.
3
Portfolio Construction & Risk Review
We emphasize diversification, express currency and local rate views independently, and assess ex-ante risk. Performance attribution closes the loop.
Currency Exposure: A Distinct Return Driver
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Important Information
The financial data presented is provided by external sources. Lazard Asset Management LLC takes reasonable care to ensure that the information provided is correct, but it neither warrants, represents nor guarantees the content of the information nor does it accept responsibility for errors, inaccuracies, omissions or inconsistencies.
Please consider a fund's investment objectives, risks, charges, and expenses carefully before investing. For more complete information about Lazard ETFs and current performance, you may obtain a prospectus or summary prospectus by calling 800-823-6300 or going to www.lazardassetmanagement.com. Read the prospectus or summary prospectus carefully before you invest. The prospectus and summary prospectus contain investment objectives, risks, charges, expenses, and other information about the Portfolio and Lazard ETFs that may not be detailed in this document. The Lazard ETFs are distributed by Foreside Fund Services, LLC.
Investment Products: NOT FDIC INSURED I NOT BANK GUARANTEED I MAY LOSE VALUE
Forward looking figures represent expected returns. Expected returns do not represent a promise or guarantee of future results and are subject to change.
Market Risk: The Portfolio may incur losses due to declines in one or more markets in which it invests.
Fixed-Income and Debt Securities Risk: The market value of a debt security may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the outlook for corporate earnings, changes in interest rates or adverse investor sentiment generally.
Interest Rate Risk: Prices of bonds and other debt securities tend to move inversely with the changes in interest rates. The portfolio may be subject to heightened interest rate risks due to certain changes in economic conditions, inflation and monetary policy, such as certain types of interest rate changes by the Federal Reserve.
Non-US Securities Risk: The portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the portfolio invests.
Emerging Market Risk: Emerging market countries generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries.
Limited Operating History Risk: Prospective investors do not have a track record or history on which to base their investment decisions.