Active management in the Fixed Income realm has been well embraced in recent years, as just yesterday we pointed out the $3.5 billion BOND (PIMCO Total Return ETF, Expense Ratio 0.55%) which since its 2012 inception has grown into the twenty-sixth largest Fixed Income based ETF in the U.S. landscape.
HYLD (Peritus High Yield ETF, Expense Ratio 1.25%) of course is another example of an actively managed Fixed Income ETF growing impressively in terms of reeling in new assets ($855 million) over time and we have spoken about this product in the context of High Yield Corporate Bond ETFs in the past on several occasions.
To prove that this is not a fluke or a two-hit wonder, we point to other actively managed Fixed Income ETFs that have rolled out in recent years and also have attracted significant interest, such as MINT (PIMCO Enhanced Short Maturity Strategy Fund, Expense ratio 0.35%, $3.8 billion in AUM), GSY (Guggenheim Enhanced Ultra-Short Bond ETF, Expense Ratio 0.28%, $707 million in AUM), SRLN (SPDR Blackstone GSO Senior Loan ETF, Expense Ratio 0.70%, $604 million in AUM), ELD (WisdomTree Emerging Markets Local Debt Fund, Expense Ratio 0.55%, $832 million in AUM) and ALD (WisdomTree Asia Local Debt Fund, Expense Ratio 0.55%, $337 million in AUM) to name some of the larger ones.
While the majority of Fixed Income ETF offerings on the market are index based products, there exist a growing number of actively managed strategies, most having kicked off their live performance in the past three to four year time period.
We can think of several smaller, and much lesser known products that are worth keeping on your screens as well as more recent entrants to the actively managed ETF space including RIGS (Riverfront Strategic Income
Fund, Expense Ratio 0.22%, $296 million in AUM), MUNI (PIMCO Intermediate Municipal Bond Strategy Fund, Expense Ratio 0.35%, $210 million in AUM), FTSL (First Trust Senior Loan Fund, Expense Ratio 0.85%, $197 million in AUM), HYLS (First Trust High Yield Long/Short ETF, Expense Ratio 1.28%, $192 million in AUM), and MINC (AdvisorShares Newfleet Multi-Sector Income ETF, Expense ratio 0.75%, $164
million in AUM).
The diversity of strategies brought to market in the actively managed fixed income space in recent years is also notable, and we believe that this particular ETF sub-category will continue to see asset growth and continued breadth of product growth in years to come.