The Arrow Reserve Capital Management ETF (ARCM) launched on Friday as an alternative to traditional money market funds and bank deposits. The fund is a diversified fixed-income portfolio of securities with an average duration of 18 months, which could vary depending on the portfolio manager’s interest rate forecast.
The actively managed fund, which is sub-advised by Halyard Asset Management, seeks capital preservation with maximum income, and is designed as a cash management tool.
According to its prospectus, ARCM will hold securities issued by U.S. dollar-denominated issuers including mortgage- or asset-backed securities rated Baa-or higher by Moody’s Investors Service Inc., or equivalently rated by Standard & Poor’s Ratings Services or Fitch Inc. or, if unrated, determined by Halyard to be of comparable quality. The fund may also invest in interest rate futures and forwards.
The expense ratio is 0.38 percent.
ARCM is the fourth product in the ArrowShares family of exchange-traded funds. Based in Laurel, Md., Arrow Investment Advisors LLC is an investment management company that’s the advisor both to ArrowShares and to Arrow Funds, a mutual fund company with five products on the market.