Paradice Launches New Active Mid-Cap ETF (M1DS)
There’s a new name on the ticker board and it’s one that’s aiming to shake up Australia’s mid-cap market.
Paradice Investment Management, a heavyweight in institutional investing, has just launched a new active ETF version of its Australian Mid Cap Fund. With the listing effective as of 5 November 2025, this newly released ETF (Ticker M1DS) is a available on Cboe.
That might sound like another fund in an already crowded ETF aisle, but here’s why it’s different.
The Rise of the Mid-Caps
Most Australian investors build their portfolios around the big end of town - banks, miners, and a handful of household names that dominate the ASX. But mid-cap stocks are normally the companies that sit between the ASX 50 and ASX 100, and these are where some of the most interesting growth stories live.
They’re often too big to be speculative but too small to be over-analysed. Think emerging leaders in tech, healthcare, or niche industrials quietly expanding their market share while the big players get all the headlines.
For long-term investors, this segment adds a layer of diversification that pure large-cap portfolios often miss.
Active ETFs vs Passive ETFs: The Ongoing Debate
Paradice’s move into the ETF wrapper is significant because it bridges two worlds:
Active management (trying to beat the market through stock selection), and
ETF convenience (intradaily tradability, transparency, and low barriers to entry).
Unlike your typical “set-and-forget” ETF that tracks an index like the ASX 200 or MSCI World, this one is actively managed — meaning Paradice’s investment team hand-picks mid-cap stocks based on research and valuation.
The trade-off?
You’ll likely pay higher fees than a passive ETF like VAS or A200, and the returns will depend on whether Paradice’s team can consistently outsmart the market.
For the “lazy” investor, this isn’t necessarily a red flag — but for some with a lower appetite for risk it might mean this ETF sits more in the “satellite” part of your portfolio, rather than the “core”.
Why This Matters for Lazy Portfolios
At The Lazy Trader, we’re all about simplicity, balance, and long-term thinking.
So where does a new active mid-cap ETF fit into that?
Diversification: It gives you exposure to mid-cap companies that don’t show up in your standard ASX 200 index fund.
Potential Outperformance: If Paradice’s research pays off, you might capture extra growth compared to a vanilla index ETF.
Hands-off Access: You still get the convenience of ETF trading — no minimum investment, no managed-fund paperwork, and it sits neatly in your brokerage account.
Just remember — higher fees and manager risk mean this isn’t a “core” lazy ETF. It’s more like a sidekick. Think Robin to your Batman ETF.
The Bigger Picture
This launch also says a lot about where the Australian ETF market is heading. Active managers who once resisted the ETF model are now embracing it — because retail investors want flexibility, liquidity, and transparency.
It’s another sign that ETFs are no longer just about “cheap and passive”. They’re becoming the universal wrapper for every kind of investment strategy.
The Lazy Take
If you’re building a “Lazy Portfolio”, the Paradice Active Mid-Cap ETF might deserve a small supporting role — especially if your current mix is heavy on blue chips or global exposure.
Use it as a spice, not the main dish.
The real power of lazy investing still comes from broad, low-cost ETFs like VAS, VGS, or IVV. But for those wanting to sprinkle in a little extra Aussie flavour — Paradice just gave you another option
