On Tuesday, Congress Asset Management released its next ETF, the Congress Intermediate Bond ETF (CAFX ).
CAFX is actively managed and operates with a net expense ratio of 0.35%. The fund seeks to offer strong total return for its investors.
In order to achieve its investment objectives, the fund mostly invests in investment grade fixed income securities. While constructing its portfolio, CAFX seeks to add high-quality securities that can both provide strong return while securing principal and long-term liquidity.
CAFX may invest in assets that have a wide range of maturities. However, the fund intends to keep an average portfolio duration between three to five years.
Along with traditional options, the fund may invest in ETFs that hold a similar policy in terms of fixed income strategy. A smaller portion of CAFX’s assets may also be used to invest in high-yield securities.
The fund’s portfolio may include investment-grade U.S. corporate and government securities, as well as munis. These fixed income assets may either have a fixed or floating interest rate. CAFX’s holdings may include cash or cash equivalents as well.
Factor-Based Investment Approach
Congress Asset Management’s approach to choosing fixed-income securities mixes a blend of different investment factors. The fund scrutinizes potential securities on a number of strategic factors, including global macro and sector considerations along with yield curve management.
Additionally, CAFX incorporates a number of tactical factors into its selection process. This includes relative valuation, break-even analysis, and security selection.
For bond investors, CAFX carries the added benefit of being an actively managed fund. As such, the fund can more effectively readjust its portfolio duration and take advantage of current market and economic conditions.
Now available on the market, CAFX joins a growing lineup of funds from Congress Asset Management. One of the largest Congress funds, the Congress Large Cap Growth ETF (CAML ), has over $213.8 million in assets under management.
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