Unconstrained fixed income funds break from the traditional mold of index-based bond funds, allowing managers increased flexibility. It is a strategy that has increased in popularity in recent years and is accessible in the exchange traded funds universe, including with the newly minted WisdomTree Western Asset Unconstrained Bond Fund (NasdaqGS: UBND).

The WisdomTree Western Asset Unconstrained Bond Fund, which debuted today, is managed by California-based Western Asset Management’s Mark Lindbloom, Morningstar’s 2014 fixed income fund manager of the year.

True to the unconstrained strategy, UBND offers investors exposure to an array of fixed income assets with the new ETF’s largest holding being a 16.5% weight to U.S. Treasurys maturing in 2014. The new fund also holds mortgage-backed securities, corporate bonds and foreign sovereign debt, among other bonds.

“Despite the name, unconstrained strategies are not undisciplined—a focus on risk is essential to management of these strategies. The specific level of risk that the manager targets is a primary differentiating factor among unconstrained strategies; some target bond-like volatility, while others are more opportunistic and target much higher levels of risk. As we outline below, an unconstrained approach to fixed income may help investors navigate today’s particularly uncertain market environment,” according to a WisdomTree research note out today.

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