The ETF industry grows each and every day, with Northern Trust as the latest firm to add to that burgeoning ecosystem. The shop, known for its notable suite of ETF income ETFs providing targeted payout periods, introduces the new fund amid a rising period for active equity ETF investing.
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The new strategy is the Northern Trust U.S. Equity ETF (NOEQ). Launched on March 20, the ETF actively invests in U.S. equities. The strategy mostly targets mid- and -large cap names, while also having the flexibility to target preferred stock or real estate investment trusts (REITs) per its prospectus.
“Demand for actively managed ETFs accelerated in 2025 and thus far in 2026 as people turn to professional managers to help them navigate a volatile equity market,” said VettaFi Head of Research Todd Rosenbluth. “It is great to see Northern Trust expand their lineup and bring their expertise to support ETF minded advisors.”
What’s more, the fund can also use derivatives like stock index futures contracts on U.S. equity indexes. The active equity ETF can, at times, invest up to 15% of its assets in one particular sector. It looks to minimize taxable capital gain distributions to shareholders, leaning on the ETF wrapper’s inherent advantages with tax efficiency.
The fund makes for an intriguing addition to Northern Trust’s ETF suite. Historically, the firm has offered ETFs within more niche spaces. Its income generating ETF suite is robust, but traditional equities has been a less popular category for the firm. Now, with NOEQ, it dives into the critical broad equity space. While the firm does offer some more core-type equity allocations via its FlexShares brand, NOEQ provides an interesting equity play under the Northern Trust brand.
What, then, is the outlook for the active equity ETF? Charging a competitive 12 basis point fee, it is contending in a highly competitive space. However, it is also a space where there may be significant assets to be had. The move represents a step forward for the firm. The new ETF is potentially one to watch as active ETFs begin to mature into key equity tools for investors.
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