“To fully exploit these performance drivers, we combine indepth
macro research, intensive fundamental research and legal analysis, and rigorous risk management,” according to Guggenheim Investments.
The actively managed Guggenheim bond ETF will be better able to shift holdings based on the current market environment, as opposed to traditional fixed-income benchmarks, which are heavily tilted toward low-yielding government-related debt. Specifically, the Barclays Aggregate Bond Index holds about two-thirds of its portfolio in the low-yielding debt.
As the Federal Reserve looks to normalize interest rates, bond ETF investors have shown greater interest in actively managed options that could better adapt to the higher rates.
For instance, the SPDR DoubleLine Total Return Tactical ETF (NYSEArca: TOTL), which launched last year, was the most popular new ETF of 2015 and now has over $2 billion in assets under management. Additionally, the older PIMCO Total Return Exchange-Traded Fund (NYSEarca: BOND) has attracted $2.6 billion in assets.
Max Chen contributed to this article.