Madison Investments has launched the Madison Short-Term Strategic Income ETF on the New York Stock Exchange. The actively managed ETF seeks to generate a high level of current income with diversified exposure to fixed income sectors.
MSTI emphasizes investment grade securities and maintains a short (typically 3.5 years or less) average portfolio duration. This is done to keep current income relatively stable and to limit share price volatility.
The fund’s managers use a disciplined and repeatable process that actively manages fixed income risks. They combine proprietary analysis and third-party research to build and monitor an approved list of high-quality securities.
MSTI carries an expense ratio of 0.40%.
Rapidly Expanding its Active Income-Driven ETFs
Madison Investments has been expanding its suite of actively managed, income-driven ETFs at a rapid pace. Last week, Madison listed the Madison Aggregate Bond ETF (MAGG ), which targets a diverse set of bonds across multiple sectors. The fund actively manages portfolio duration, yield curve positioning, sector/industry allocation, and credit quality. Prior to MAGG’s launch, the firm listed the Madison Covered Call ETF (CVRD ) and the Madison Dividend Value ETF (DIVL ).
Chief Distribution Officer Steven Carl said in a news release that Madison’s new ETFs deploy Madison’s long established investment approach.
“Our expanding ETF suite highlights our commitment to providing strategies that embody our longstanding ‘Participate and Protect’ philosophy,” Carl said. “Each product was designed to balance potential returns with prudent risk management.”
Carl is also chair of the executive committee.
“We have seen growing demand for actively managed ETFs in 2023,” said VettaFi’s head of research Todd Rosenbluth. “It is great to see Madison Investments build out a suite of products to meet advisors in the arena they want to invest.”