With interest rates at historic lows, AdvisorShares, an exchange traded fund sponsor known for its actively managed offerings, is launching a new active short-duration bond fund that tries to limit risk in changing rates.
The AdvisorShares Newfleet Multi-Sector Income ETF (NYSEArca: MINC) begins trading on Wednesday, March 20. The actively managed ETF will try to provide current income consistent with preservation of capital while mitigating fluctuations in net asset value due to interest rate changes. The fund has a 0.75% expense ratio.
MINC will primarily hold high quality investment grade debt. The fund will overweight and underweight 14 different bond sectors as the portfolio manager builds a diversified and tactical portfolio. Bond holdings will have a low average duration, targeted between 1 and 3 years.
Newfleet Asset Management, an affliated manager of Virtus Investment Partners, will sub-advise the ETF.