T. Rowe Price has launched the T. Rowe Price U.S. High Yield ETF ((THYF )), the firm’s fourth actively managed fixed income exchange-traded fund. The actively managed ETF is available to the public beginning today on NYSE Arca.
Managed by the same investment team led by Kevin Loome and using the same process as the mutual fund T. Rowe Price U.S. High Yield Fund (TUHYX), THYF is designed to primarily provide a concentrated yet balanced portfolio focused on the traditional U.S. high yield bond investment opportunity set.
THYF seeks to provide total return and, secondarily, current income by investing primarily in U.S. dollar-denominated high yield corporate bonds and other fixed and floating-rate corporate securities.
“The U.S. High Yield ETF is guided by our experienced team of high yield professionals, the core of which has worked together for over 15 years and managed through multiple market cycles,” said Loome in a news release. “We look forward to delivering our active, flexible, and concentrated investment approach in the ETF format so that clients who prefer ETFs can seek to benefit from our best ideas.”
Tim Coyne, head of exchange-traded funds at T. Rowe Price, added: “With the addition of a new fixed income ETF, we continue to grow our capabilities and equip investors with an even greater range of compelling strategies in the ETF format. U.S. High Yield ETF is designed to find another way to access our time-tested fixed income strategies that can help meet clients’ portfolio needs.”
THYF has an expense ratio of 0.56%.
This is T. Rowe’s ninth active ETF. The firm has also recently completed an SEC filing for an ETF that invests in floating-rate bonds, expected later this year.
“Since entering the ETF market a couple of years ago, T. Rowe Price has provided ETF-centric advisors with access to some of their best actively managed strategies,” said Todd Rosenbluth, head of research at VettaFi. “It is exciting to see an additional fixed income offering to round out the lineup.”
T. Rowe Price has been in the investing business for over 80 years through conducting field research firsthand with companies, utilizing risk management, and employing a bevy of experienced portfolio managers carrying an average of 22 years of experience.
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