Just over a year ago, the Thornburg Core Plus Bond ETF (TPLS ) and the Thornburg Multi Sector Bond ETF (TMB ) made their debut. The launches came in a year that saw a record number of active ETFs hit the market (almost 1,000, per Morningstar). With more uncertainty to go around in 2026 and a fixed income market that calls for active strategies, these funds are even more relevant now.
Though aggressive rate hikes are no longer a concern, a new U.S. Federal Reserve coming in May could potentially alter that narrative. Meanwhile, inflation remains stubborn and sticky. Ongoing geopolitical tensions and rising fiscal deficits add to the wall of worry that not only affects the equities market, but the fixed income market as well. Again, this is where an actively managed fund is conducive to the current market environment.
TPLS: High-Quality Core Exposure
Thornburg’s TPLS is ideal for investors seeking to outperform traditional core bond exposure without dipping too deep into the pool of credit risk for capital preservation. After 2025 ended the year with three consecutive rate cuts, TPLS is well-positioned to provide income if the rate-cutting regime continues in 2026 given its “plus” strategy. The fund’s 30-day SEC yield is 4.1% as of January 31.
The active management means that Thornburg’s portfolio managers can tilt the fund’s holdings to capture more yield opportunities. TPLS managers can allocate up to 25% of the fund’s assets to below-investment-grade securities to extract more yield. Meanwhile, the majority of the fund still rests with investment-grade debt.
While core Treasury bonds remain a staple in the fund’s portfolio, the fund can also include include asset-backed and non-agency mortgage-backed securities. Again, the active management strategy allows for autonomous portfolio adjustments to capture extra yield that indexed funds may not.
TMB: Dynamic and Diversified Income
Investors looking to reach for even more yield in 2026 will have to look beyond bond exposure. Like TPLS, TMB is also actively managed. That gives the fund a dynamic and diversified approach to extracting more yield in today’s tricky market environment.
The fixed income market is vast and requires a discerning palate for yield opportunities. TMB casts its net wide by investing across various sectors, geographies, credit qualities, and maturities. Looking for high-yield opportunities is the goal for TMB and once again, the active management translates to a flexible approach that taps into the expertise of its portfolio managers.
The income diversification is apparent in its almost 400 holdings while its 30-day SEC yield is at 4.2% as of January 31.
Proven Performers
Since their debut, the fixed income markets have gotten murkier. As such, it requires the requisite expertise of portfolio managers who understand the systematic and idiosyncratic risks affecting fixed income markets today. Moreover, investors are looking for flexible strategies wrapped in the benefits of an ETF investment vehicle with cost efficiency, transparency, and adaptability.
At 45 basis points and 55 basis points respectively, TPLS and TMB fit that mold. With a one-year track record under their belts, both funds have proven to be capable performers for those seeking capital preservation and yield.
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