The exchange traded fund community welcomes another entrant to the growing space, with StrongVest partnering up with CWA Asset Management Group to launch their first ETF.
The StrongVest recently launched the CWA Income ETF (BATS: CWAI), which is sub-advised by CWA Asset Management. CWAI has a 0.75% expense ratio.
CWAI’s portfolio is managed by Lewis Johnson, Co-Chief Investment Officer at Capital Wealth Advisors and President, Co-founder & Partner of Fundamental Global Investors, LLC, their affiliated investment manager.
The actively managed ETF will try to provide total return by investing in a diversified portfolio of corporate bonds with varying maturities and equity securities. Typical holdings include investment-grade corporate bonds of large-cap domestic issuers, along with securities of small- and mid-cap issuers, both foreign, including emerging markets and domestic in any market sector regardless of credit quality.
The fund may also include equity securities that are characterized by high dividend yield, including common stocks, preferred stocks, warrants, convertible securities and pooled investment vehicles. These holdings will not exceed more than 20% of its total assets in normal circumstances.
CWA Asset Management Group selects holdings based on a value strategy focused on the current and potential future valuation of a security, credit quality of an issuer and the stability of the issuer’s balance sheets and competitive advantages.
“Despite recent Federal Reserves action, rates remain lower on a global basis and so investors of every sort are rightly looking down all avenues in the hunt for income, ” Laura Morrison, Senior V.P. and Global Head of ETPs at BATS, said in a note. “In CWAI, StrongVest has created a compelling ETF which allows for tax-efficient access to an active, income-targeting investment strategy at a low expense ratio. This is good news for investors.”
For more information on new fund products, visit our new ETFs category.