Neuberger Berman Expands Active Bond ETF Lineup With NBTR

“Neuberger Berman has increasingly brought their best and brightest into the ETF market,” said Todd Rosenbluth, head of research at VettaFi. “It is great to see them offer an actively managed core bond strategy in an ETF wrapper.”

NBTR relies on a research teams of sector specialist, seeking to outperform across market cycles. The fund invests across a variety of bonds that include government and corporate bonds. It also invests in mortgage-backed securities and asset-backed securities. The majority of the bonds NBTR invests in are investment grade but up to 30% of the portfolio may be comprised of “junk bonds”.

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The managers seek to keep an average duration within two years of the Bloomberg U.S. Aggregate Bond Index. The specialty sector teams build internal views that form the framework for sector, duration, and general positioning for the strategy. The fund managers and sector teams work together to determine weightings and security selection.

When evaluating securities, the team considers cash flows, a company’s balance sheet and ability to make payments, market positions, and more. When applicable, the team also considers financially material ESG factors.

The strategy invests in securities the team believes to be undervalued while selling those it views to be overvalued. The fund invests primarily in domestic bonds and up to 15% in foreign bonds, as well as derivatives to hedge risk or for portfolio efficiency.

NBTR expands on the firm’s current actively managed fixed income ETFs. These include the Neuberger Berman Short Duration Income ETF (NBSD B) and the Neuberger Berman Flexible Credit Income ETF (NBFC C+).

NBTR carries an expense ratio of 0.37%.

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