Longwave Capital Launches Active Australian Small-Cap ETF on ASX

Australian investment boutique Longwave Capital Partners has launched the Longwave Australian Small Companies Fund – Active ETF (ASX: WAVE), bringing its existing small-cap strategy to the exchange-traded market. The fund, established in 2019, holds a diversified portfolio of approximately 100 to 120 ASX-listed small-cap companies, combining fundamental research with systematic quality screening. Since inception, the strategy has returned 8.2% annually after fees, outperforming the S&P/ASX Small Ordinaries Accumulation Index by 2.6 percentage points per year through August 2026. The launch comes as Australian small caps trade at their widest valuation discount to large caps in 15 years. WAVE features a scale-based management fee that declines as assets grow, with no performance fee.