Distressed debt investments in either distressed or defaulted bonds can potentially generate robust returns in short periods. For example, the investments would benefit if a company quickly bounces back after a bankruptcy. On the flip side, it is a very risky investment approach.

A prospectus was filed with the SEC in November 2012, and Altman says the finished product is still several months away.

For more information on new fund products, visit our new ETFs category.

Max Chen contributed to this article.