New Bond ETF From FolioBeyond Offers Active Options Overlay

FIXP looks to generate yield for its investors, with a secondary objective of capital appreciation. This fund is actively managed and has a net expense ratio of 1.07%. 

FIXP’s strategy involves investing in a selection of ETFs across different sectors of the bond market. These sectors include investment-grade or high yield corporate bonds, munis, and mortgage-backed securities, among others. This includes both direct investments and indirect exposure through option overlays.

In an effort to outperform traditional bond indexes, FolioBeyond utilizes a proprietary fixed income model. The model uses quantitative frameworks and algorithms to evaluate the risk and value capabilities of each asset. 

“Our expertise in quantitative modeling, combined with decades of market experience, ensures FIXP is well-positioned to meet the needs of both institutional and retail investors,” noted Dean Smith, FolioBeyond’s chief strategist and portfolio manager.

To bolster the overall income for the fund, FIXP also utilizes an options overlay. FIXP’s options strategy chiefly involves selling a mix of call and put options and spreads on its underlying ETFs. 

When it comes to navigating the fixed income landscape, an active strategy with an option overlay can be highly beneficial. All in all, actively managed options portfolios can provide investors with more flexibility to capitalize on trends in the bond market. 

Now available on the NYSE, FIXP is the second ETF from FolioBeyond to be currently listed on U.S. markets. The first fund, the FolioBeyond Alternative Income and Interest Rate Hedge ETF (RISR B-), has well over $100 million in assets under management. 

“FIXP represents FolioBeyond’s commitment to delivering cutting-edge solutions for today’s evolving fixed income landscape,” said Yung Lim, CEO of FolioBeyond and portfolio manager for FIXP.

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