Displaying items by tag: ETFs

Independent wealth management firm Private Advisor Group recently introduced WealthSuite, its new investment management platform. The multi-custodian platform, which is exclusive to its network of over 750 financial advisors, offers bespoke mutual fund, ETF, and blended mutual fund/ETF model portfolios. The platform also provides custom indexing and tax-optimized solutions delivered through an SMA structure. The portfolios are managed by investment strategists including BlackRock, Fidelity Institutional Wealth Adviser LLC, Orion Advisor Solutions, and WisdomTree. Private Advisor Group partnered with Orion Advisor Solutions to handle the technology powering account opening, management, and servicing of the platform, while Private Advisor Group's internal portfolio administration team will manage the day-to-day. The company has plans to continually evaluate and expand its lineup of available strategists with a focus on providing differentiated solutions for advisors and their clients. Verne Marble, Private Advisor Group's Director of Business Development had this to say about the platform, “On average, investment management accounts for 19% of an advisor's time, and WealthSuite is structured to free up capacity so advisors can focus more of their time with investors.”

Finsum:Private Advisor Group launched its new model portfolio platform WealthSuite to help free up time for its network of financial advisors.

Following its February launch of five equity ETFs and one fixed-income ETF, Capital Group recently launched three active fixed-income ETFs on the New York Stock Exchange. The three new funds include the Capital Group Short Duration Income ETF (CGSD), the Capital Group Municipal Income ETF (CGMU), and the Capital Group U.S. Multi-Sector Income ETF (CGMS). CGSD is a short-duration income fund that pursues high-quality income with low-interest rate sensitivity. CGMU is a core municipal fund that pursues tax-exempt income consistent with capital preservation while seeking total return, and CGMS is a diversified U.S. multi-sector income fund that pursues a high level of current income and the opportunity for capital appreciation. Mike Gitlin, head of fixed income for Capital Group said the following about the three funds, “We’ve deliberately built our three new active ETFs in categories that have historically been underserved by active ETF managers including multisector bond, municipal national intermediate bond and short-term bond. We believe these will help investors manage short-term cash needs, generate tax-exempt income, and benefit from some of the best starting yields we’ve seen in credit in years.”

Finsum:To meet underserved areas of the fixed-income market, Capital Group launched three actively-managed bond ETFs.

T. Rowe Price recently announced the launch of the U.S. High Yield ETF (THYF), an actively managed bond fund that began trading on the NYSE Arca. This is the fourth actively managed fixed-income ETF for the fund firm. The ETF follows the same process as its mutual fund counterpart, the T. Rowe Price U.S. High Yield Fund (TUHYX). The strategy is designed to provide a concentrated, yet balanced, portfolio primarily focused on U.S. high-yield bonds or bonds that are considered below investment grade. Both the ETF and mutual fund are managed by Kevin Loome, CFA, who has been at the firm for 16 years. Loome utilizes a disciplined, fundamental, bottom-up credit selection process, combined with forward-looking research to identify a concentration of high-conviction total return opportunities. While the fund mainly consists of high-yield corporate bonds, it may also include other income-producing instruments such as bank loans, convertible securities, and preferred stocks. 

Finsum:T. Rowe Price added to its active fixed-income ETF lineup with the launch of the T. Rowe Price U.S. High Yield ETF (THYF).

A niche? Hey, almost everyone has one. So why not fixed income ETFs – non-core fixed income, especially, which “play an expanded role in portfolio construction” for institutional investors, according to the results of a survey conducted by State Street Global Advisors, reported etfdb.com.

According to the report, The Role of ETFs in a New Fixed Income Landscape, of the 700 global institutional investors SSGA surveyed with an eye on upping their exposure to high-yield corporate debt over the next 12 months, 62% likely will do so through ETFs. In contrast, only 27% of investors significantly tapped into ETFs to build their allocations to non core fixed income like high yield last year.

“The increase from just over a year ago is remarkable,” the report said.

Among larger institutions, well, the momentum especially reverberates, according to etftrends.com. Sixty eight percent of respondents generating more than $10 billion in assets indicated they’re likely to leverage ETFs to erect new exposures to high yield corporate credit.

“Our conversations with investors have reinforced what we already knew – there is significant demand for more targeted fixed income products,” said Tony Kelly, an ETF industry leader. “Our initial product suites aim to create a full toolkit for high-yield investors looking to implement their specific views on the market, and we anticipate extending this approach to other fixed income asset classes.”

Innovator Capital Management recently launched its new Research & Investment Strategy hub containing model portfolios. The new site was built to provide advisors with a framework on how to construct portfolios with Defined Outcome ETFs. The site also provides market and economic data, and analysis and commentary with a focus on managing risk. Innovator’s Strategic Defined Outcome ETF Portfolios are designed to target varying levels of risk and return across the risk-reward spectrum. There will be five portfolios to start. This includes a Conservative model, a Balanced Alternative model, an All-World Hedged Equity model, a Controlled Growth model, and an Accelerated Growth. All the portfolios will consist of ETFs from Innovator’s Defined Outcome ETF lineup. The lineup, which has so far amassed over $8.8 billion in assets under management, includes Buffer ETFs, Accelerated & Stacker ETFs, and Floor ETFs. The Defined Outcome ETF portfolios will be free and rebalanced annually. An advisor can construct portfolios with custom allocations to specific Defined Outcome ETFs and then analyze the custom portfolio’s return and risk characteristics.

Finsum:Innovator Capital has launched a series of model portfolios allowing advisors to construct custom portfolios using the firm’s Defined Outcome ETFs.