The funds are designed to be used in different ways in an investor’s portfolio.
The intermediate municipal and long municipal ETFs are part of the firm’s “Tax Aware” brand of strategies.
“Tax Aware ensures maximum portfolio flexibility in being able to seek opportunities within the high-quality municipal bond market, while also opportunistically allocating to municipal credit and taxables,” Sheely said.
Meanwhile, the corporate bond and core bond plus ETFs generate excess returns relative to their benchmark, while maintaining similar levels of volatility.
Finally, the buffer-cap strategy is the most versatile, and advisors can use it in a variety of ways. First, it can replace core equity exposure for those looking to reduce equity drawdown risk. Second, for those with substantial conversative assets looking to shift some to equity growth, they can instead shift it to the ETF.
Finally, ETFs such as the buffer ETF can act as an alternative to other funds that are more expensive and illiquid, Sheely said.
The total expense ratio for the buffer ETF is 69 basis points, while it’s 28 basis points for the Tax Aware ETFs. The expense ratio is 30 basis points for the corporate bond ETF and 33 basis points for the core plus bond ETF. All five are available on the platforms of Fidelity, Schwab, Pershing, Envestnet, Truist and Voya, Sheely said.
The funds can appeal to a variety of audiences both retail and institutional. They also have diverse strategies, meaning they will satisfy a variety of investor needs, Sheely said.
“As an issuer dedicated to the active ETF space, we believe that expanding both our fixed-income capabilities within ETFs and entering the risk-managed buffer-cap space will allow us to better service our clients’ needs and serve as a holistic partner within their practices,” he said.