“The key in short duration bond investing is to capitalize on structural inefficiencies in fixed‐income markets,” Maroutsos said in a press release. “We believe we can better position this fund to outperform through market cycles by actively looking for value across sectors and geographies using a wide range of fixed‐income instruments.”
Components may be taken across sectors and geographies using a wide range of instruments to capitalize on investment opportunities. Underlying holdings may include up to 15% speculative-grade debt and up to 70% in foreign securities, but the ETF will limit emerging market exposure to 15% and foreign currency exchange exposure to 15%. The fund may also utilize derivatives to manage or hedge risk, enhance returns or manage duration.
The ETF may include bonds, debt securities, and other similar instruments issued by various U.S. and foreign public- or private-sector entities. The instruments include high-yield bonds, commercial paper, agency mortgage backed securities, and floating rate securities. VNAL may hold up to 15% in asset-backed securities that are rated investment grade or of similar quality as determined by Janus Capital. The fund may also invest in cash or cash equivalents such as commercial paper, repurchase agreements and other short-duration fixed-income securities.
For more information on new fund products, visit our new ETFs category.