Displaying items by tag: active ETF

With inflation concerns lingering, advisors are closely monitoring the Federal Reserve’s next moves. The Fed held interest rates steady but raised its inflation forecast for the year, while also trimming its growth projection to 1.7%. 

Despite expectations for two rate cuts in 2024, economic uncertainty and potential trade disputes make forecasting difficult. Fixed income investors must remain adaptable, balancing inflation risks with the Fed’s evolving stance. 

Actively managed bond ETFs, such as the Eaton Vance Total Return Bond ETF (EVTR), offer flexibility in navigating rate shifts. By blending investment-grade debt with selective high-yield exposure, EVTR seeks to optimize returns while mitigating risk in an unpredictable market.

Finsum: Active fixed income tends to dominate in macro markets, and that is the current environment that is current environment exactly. 

American Century Investments recently launched a new actively managed fixed-income ETF targeting floating-rate debt securities. The American Century Multisector Floating Income ETF (FUSI) trades on the NYSE Arca and has an expense ratio of 0.27%. FUSI seeks to complement an investor's core bond holdings with current income, broad diversification, and the potential to mitigate the impact of rising rates. The ETF invests across various floating rate security segments including collateralized loan obligations (CLOs), commercial mortgages, residential mortgages, corporate credit, and other similarly structured investments. Plus, up to 35% of the portfolio may be allocated to high-yield securities including bank loans and other lower-rated floating-rate debt. Managers Charles Tan, Jason Greenblath, and Peter Van Gelderen build the ETF’s portfolio using a sector rotation approach that combines macroeconomic inputs, technical analysis of the relative value among various sectors, and fundamental research on individual securities. As part of the launch, Sandra Testani, Vice President of ETF Product and Strategy, stated, “FUSI compliments our current ETF income.” She also noted that “We believe a diversified floating rate mandate has the potential to mitigate downside risk and increase income, and we are excited to offer this on our ETF platform.”

Finsum:American Century recently launched the actively managed American Century Multisector Floating Income ETF (FUSI), which invests across various floating rate security segments such as CLOs, commercial mortgages, residential mortgages, and corporate credit.