On Thursday, Allspring Global Investments made its ETF debut with the launch of three new ETFs. Each fund offers a different strategy for active fixed income investing.
Allspring's Core Strategy
For investors seeking a new core bond fund, the Allspring Broad Market Core Bond ETF may be able to help. Despite being actively managed, AFIX has a relatively low net expense ratio of 19 basis points.
As a core fund, AFIX primarily invests in investment-grade bonds. However, a smaller portion of fund assets may be allocated to U.S.-dollar-denominated foreign debt. To choose assets for the fund, Allspring blends fundamental research with a relative value analysis.
A Diversified Take on Fixed Income
Meanwhile, the Allspring Income Plus ETF offers a more diversified means of locking in yield. This ETF has a net expense ratio of 0.35%.
To generate income for its investors, AINP invests in a wide variety of different bonds. This strategy may invest in junk bonds and international bonds, including those from emerging markets.
Among all these options, AINP chooses bonds through a rigorous credit research process to find individual opportunities. By opting to include bonds from a wide variety of sectors, AINP can better tap into different sources of alpha.
The Core Plus Option
The third fund is the Allspring Core Plus ETF. It operates with a net expense ratio of 0.30%.
As a core plus strategy, APLU can tap into a broader range of bonds than a traditional core offering. Up to 35% of the fund’s total assets may be in junk bonds, while 25% could remain in foreign issuers, including those from emerging markets.
The investment process for APLU begins with a top-down approach to quantify duration, sector allocations, and positioning of the yield curve. Afterwards, Allspring uses credit research to lock in individual securities with good indicators for growth and yield.
“Elevating investing to be worthwhile involves listening to investors, especially the investment advisors that have been our key collaborative partners for years,” said Rick Genoni, global head of Product Development and Innovation and leader of Allspring’s ETF initiative. “What we heard over and over again was a desire to access our successful active management strategies in an ETF structure, with the liquidity and tax efficiency benefits it brings to the table.”
These three new funds leverage Allspring’s extensive experience in asset management. The firm currently has about $590 billion in assets under advisement.
For more information, please visit VettaFi.com | ETF Trends.
