Astoria Lists New Active Core Fixed Income ETF

AGGA is an actively managed fund that looks to generate current income to its investors. The fund is actively managed and has a net expense ratio of 56 basis points. 

A “fund of funds,” AGGA’s goal is to provide income by investing in other U.S. fixed income ETFs. This includes a variety of fixed income sectors, such as U.S. Treasuries, corporate bonds, and municipal bonds, among others. 

To decide which funds to include in its portfolio, AGGA uses a fundamental analysis based on a few different factors. This begins with a macroeconomic evaluation of monetary policy and expectations for upcoming rate cuts.  

From there, AGGA’s team evaluates credit trends to manage risk/reward opportunities and find compelling credit sectors. Lastly, the fund will look within specific fixed income sectors to offer an engaging blend of value, diversification, and downside security. 

While AGGA typically focuses on the U.S. fixed income sector, the fund may also opt to include issuers outside the United States. Notably, this international exposure could include emerging markets, such as China. 

An actively managed fund, AGGA looks to offer a core fixed income strategy that could outperform a traditional index. Given the relative uncertainty of the U.S. market at the moment, the flexibility of active management could be fortuitous. 

“Advisors are increasingly turning to active fixed income ETFs as they seek help navigating the bond market,” noted Todd Rosenbluth, head of research at VettaFi. “This new Astoria fund taps into some experts from the ETF Strategist world.”

Astoria now has four different ETFs listed in the United States. One of the largest such funds, the Astoria US Equal Weight Quality Kings ETF (ROE B+), has about $160 million in assets under management. 

For more information, please visit VettaFi.com | ETF Trends.