That’s what Aegon NV’s Transamerica Corp. was aiming for with the new batch of ETFs it introduced in August, according to Tom Wald, chief investment officer for the company’s asset management unit.
Transamerica’s four funds specifically look to mitigate risk during times of volatility, limiting the amount of hedging that an investor -- such as an insurer -- would have to do to protect itself. The strategies mimic managed-risk mutual funds but could be cheaper, according to Joe Becker, director of portfolio strategy for Milliman Financial Risk Management, which subadvises the ETFs.
“We didn’t want to just be another ‘me-too’ competitor out there chasing the herd,” said Wald, adding that his funds could be used in the investment portfolios that back an insurer’s policies or in variable annuity products. “If you’re going to be successful in the ETF market, you really have to have a differentiated product.”
The article was provided by Bloomberg News.