Academy Asset Management on Wednesday launched the Academy Veteran Impact ETF (NYSE Arca: VETZ) on the New York Stock Exchange. VETZ seeks to generate income by investing in loans to U.S. service members, military veterans, their survivors, and veteran-owned businesses. The fund facilitates the flow of capital to veterans, resulting in lower borrowing costs for veterans and their families.
Academy Asset Management is a disabled veteran-owned and operated asset manager that specializes in fixed income. Its goal is to provide opportunities for veterans. As part of this goal, AAM pairs veterans with Wall Street veterans for mentorship.
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AAM noted that it can be difficult for veterans to obtain credit. Buying a home is a challenge for service members at their duty station. This is especially true for younger service members with families. So, VA home loans are critical for service members and veterans looking to buy a home.
In addition, when starting a small business, a service member’s military experience doesn’t often translate into the private sector. This presents challenges for veterans starting a small business and seeking an underwriter.
“This is a unique way for people to support the military and veterans taking advantage of the liquidity and accessibility common to ETFs,” said VettaFi’s head of research Todd Rosenbluth.
VETZ carries an expense ratio of 0.35%. AAM will donate a portion of the fund’s management fee to veteran and military-related charities.
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