Longwave Capital Launched Active ETF on ASX

The Longwave Australian Small Companies Fund has expanded from a private unit trust to a publicly traded exchange-traded fund.

Updated on Oct. 14, 2026 in Investing

Isometric editorial illustration of neatly stacked blocks, representing an organized financial portfolio for an active ETF launch. — Longwave Capital Partners has transitioned its Australian Small Companies Fund to an active exchange-traded fund listed on the Australian Securities Exchange. AI Illustration. Upload story photo >

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Longwave Capital Partners has listed the Longwave Australian Small Companies Fund as an active ETF on the Australian Securities Exchange. The fund, which holds between 100 and 120 companies, previously operated as an unlisted unit trust.

Why it matters

The firm targets market inefficiencies in the small-cap sector where limited analyst coverage allows active managers to identify mispriced opportunities. By listing as an ETF, the fund offers broader access to a strategy that focuses on companies outside the large-cap market.

The fund achieved an 8.2% annual return after fees through 31 August 2026, outperforming its benchmark by 2.6 percentage points. As of 30 September 2026, the S&P/ASX Small Ordinaries Index held a forward P/E of 15.5 compared to over 17 for the S&P/ASX 100.

The players

Longwave Capital Partners

This boutique investment firm specialises in managing portfolios that target opportunities beyond the large-cap market.

Australian Securities Exchange

This is the primary public financial market in Australia where securities, including the newly listed active ETF, are traded.

The details

The investment process leverages systematic quality assessments alongside fundamental analysis to manage a diversified portfolio of 100 to 120 companies. Investors benefit from a scale-based management fee model that is designed to decrease automatically as total assets under management increase.

The investment strategy began operating as an unlisted unit trust in October 2019.
Reported annual fund returns were calculated for the period ending 31 August 2026.
Valuation metrics for small and large market indices were recorded on 30 September 2026.
The fund officially began trading as an active ETF on the ASX on 14 October 2026.

Market Dynamics

This listing follows a pattern set by the industry shift toward offering retail investors direct access to active management strategies through exchange-traded vehicles. The move capitalises on the trend of boutique managers moving beyond unlisted trusts to capture larger shares of the Australian market.

Retail investors can now gain exposure to this small-cap strategy via the ASX without needing to access unlisted unit trusts. The scale-based fee structure means that as the fund grows in popularity, the management costs for individual shareholders may decrease.

The takeaway

The transition to an active ETF format makes a previously private investment strategy accessible to a broader range of retail participants. Investors should monitor how the fund manages its performance metrics as it scales and adapts to the public exchange environment.