Today, Thornburg Investment Management expanded its growing ETF roster with the launch of two new funds. Both offer actively managed takes on bond investing.
Thornburg's Core Plus Strategy
As the fund’s title implies, the Thornburg Core Plus Bond ETF (TPLS) offers Thornburg’s take on a core plus bond strategy. The fund has a net expense ratio of 45 basis points.
TPLS looks to provide income and capital appreciation through a disciplined bond strategy. This fund may invest in bonds and other investment tools that provide bond exposure.
Additionally, up to 25% of net assets for TPLS may be allocated to high yield bonds. These bonds can provide both diversification and stronger income potential.
The fund may invest in assets of any duration or maturity. That said, TPLS expects to have an average dollar-weighted duration that sits within two years of the Agg’s average.
Building Out Sector Exposure
Meanwhile, the Thornburg Multi Sector Bond ETF (TMB) may be able to provide more broad fixed income exposure. The net expense ratio for the fund currently sits at 55 basis points.
Much like TPLS, TMB seeks to generate both income and capital appreciation for its investors. However, this fund invests in a much larger variety of fixed income assets.
This includes investments such as mortgage-backed securities, structured notes, bank loans, and zero coupon bonds, among many others. Overall, the portfolio team expects the average duration of the fund to sit somewhere between one to five years.
TMB and TPLS enter the arena after Thornburg launched its first two active ETFs last month. Thornburg noted that these funds, the Thornburg International Equity ETF (TXUE ) and the Thornburg International Growth ETF (TXUG ), have collectively seen over $80 million in investments.
“With over $80 million in client inflows, it’s clear that investors look to Thornburg’s four decades of investing excellence and prudent risk management to achieve their long-term financial goals,” said Mark Zinkula, CEO of Thornburg Investment Management. “Expanding our ETF lineup with two fixed income ETFs reflects our commitment to meeting long-term client demand.”
See More: Thornburg Enters ETF Arena With 2 International Funds
“Thornburg entered the ETF market recently, so it is great to see them expand their lineup,” said Todd Rosenbluth, head of research at VettaFi. “Advisors are increasingly turning to active ETFs to support asset allocation needs.”
For more information, please visit VettaFi.com | ETF Trends.
