On Wednesday, Cohen & Steers announced the launch of a suite of three different actively managed ETFs. Each of these funds uses the firm’s tried-and-true investment strategies within the ETF wrapper.
“The launch of our active ETFs strategies reinforces our commitment to providing investors with vehicles that help them achieve their objectives and unlock the full potential of their portfolios,” said Joseph Harvey, chief executive officer of Cohen & Steers. “We see significant tailwinds for real assets and preferred securities and believe that an allocation to these asset classes can lead to superior investment outcomes compared to traditional 60/40 stock bond portfolios.”
Examining the New Active ETFs
The first fund, the Cohen & Steers Real Estate Active ETF (CSRE), focuses on investing in real estate securities. By doing so, CSRE seeks to provide total return with the added perks of portfolio diversification.
Leveraging the firm’s expertise, the fund uses a bottom-up investment process to fine-tune its real estate exposure. The fund has a net expense ratio of 70 basis points.
Investors seeking to build income may take an interest in the Cohen & Steers Preferred and Income Opportunities Active ETF (CSPF). The fund seeks to provide both high income and capital appreciation.
To do so, CSPF invests in a wide variety of preferred securities, though the fund focuses on investment grade. In particular, the ETF looks for preferred securities that the portfolio team believes to be undervalued relative to overall credit quality. CSPF’s net expense ratio sits at 50 basis points.
Last but certainly not least is the Cohen & Steers Natural Resources Active ETF (CSNR). This fund seeks total return through a portfolio focused on natural resource companies.
Cohen & Steers uses a top-down investment approach to select companies for this fund. In particular, CSNR focuses on companies engaged in operations such as energy, metals, mining, and agriculture.
“Cohen & Steers has been an asset management thought leader for years in support of alternative equity and income strategies,” noted Todd Rosenbluth, head of research at VettaFi. “It is exciting that their capabilities will now be accessible for ETF-minded advisors. Demand for active ETFs continues to grow in our community”
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