THYF is focused on the traditional U.S. high yield bond investment opportunity set. It invests primarily in U.S. dollar-denominated high yield corporate bonds and other fixed and floating-rate corporate securities.
The fund “really leverages our full investment research platform,” Coyne said. “It’s a high conviction strategy, which I think advisors are looking for.”
A Significant Tilt Towards Active Management
Looking broadly at the high yield space, Coyne said that “it’s about a $300 billion category.” In terms of open-ended funds, “about 80% of those assets are in mutual funds, about 18%… are in passive ETFs, and about 1% are in active ETFs.”
“So, I think there’s a clear understanding of the space by advisors,” he said. “Also, there’s a significant tilt towards active management in that space. And we feel that the combination of the ETF accompanied with our fundamental investment research is a very compelling offering for our clients.”
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