The ETF will analyze value assessment of sectors to determine under- and overweights, along with interest rate outlook and sector allocation targets. Next, the team will look at fundamentals and assess credit risks, company management, issue structure and technical conditions. Lastly, the managers will select high-conviction picks across 14 sectors, without restrictions on speculative-grade or non-U.S. securities.
As of August 12, NFLT includes a significant cash and cash alternative holdings, such as 96.5% tilt toward Treasury bills 9/3/2015 and 2.0% cash.
The Newfleet fund was launched with the help of Virtus Investment Partners, which acquired a majority stake in the turn-key ETF services provider, ETF Issuer Solutions. [Virtus Acquires Majority Stake in ETF Issuer Solutions]
NFLT will be competing against the recently launched WisdomTree Western Asset Unconstrained Bond Fund (NasdaqGS: UBND). [A New Bond ETF With no Constraints]
For more information on new fund products, visit our new ETFs category.
Max Chen contributed to this article.