Touchstone Investments announced the launch of its first of four new actively managed exchange traded funds. The Touchstone Strategic Income Opportunities ETF (NYSE Arca: SIO) trades on the New York Stock Exchange Arca.
The expanded opportunity set of this multi-sector bond strategy provides the flexibility to invest effectively in a variety of different markets and is focused on providing a high and consistent level of income and total return.
The remaining ETFs, which trade on the NYSE Arca and Cboe BZA, mark the natural expansion of Touchstone’s Distinctively Active® investment philosophy through an ETF structure, providing shareholders with more investment options. Each of the four ETFs has a corresponding Touchstone mutual fund that shares a similar core investment strategy.
“Demand from advisors for actively managed fixed income ETFs has accelerated recently as the Fed has been raising rates. Touchstone is the latest asset manager with a strong brand in the mutual fund space to bring expertise into the ETF world,” said Todd Rosenbluth, head of research at VettaFi. “We see room for growth once advisors learn more about what makes their offering unique.”
The other ETFs include:
- Touchstone US Large Cap Focused ETF (Cboe BZX: LCF) – This fund seeks capital appreciation by investing in U.S.-listed equity securities that have a market capitalization at the time of purchase above $5 billion and focuses on investing in companies with reasonable valuations combined with distinctive barriers to entry in their respective markets. (Inception: July 27, 2022)
- Touchstone Dividend Select ETF (NYSE Arca: DVND) – This fund seeks a high level of current income and capital appreciation by investing primarily in a portfolio of dividend-paying, large-capitalization equities which have the potential to support reliable, growing dividends along with reasonable valuations. (Inception: August 2, 2022)
- Touchstone Ultra Short Income ETF (Cboe BZX: TUSI) – This fund seeks maximum total return consistent with the preservation of capital by primarily investing in a diversified portfolio of investment grade fixed income securities; its portfolio is managed to maintain an effective duration of one year or less under normal market conditions. (Inception: August 4, 2022)
“Distinctively Active management has long been the hallmark of Touchstone’s investment philosophy, and we are excited to extend that to investors through our ETF offerings,” said Blake Moore, president and CEO of Touchstone Investments, in a news release. “ETFs have grown in popularity among investors in recent years, so extending our Distinctively Active approach into ETFs is a natural expansion of our core competencies.”
Touchstone’s ETFs have the potential to provide excess returns and complement most investment portfolios; seek to reduce unintended risks and offer the flexibility to capture upside potential and limit downside risk relative to an index; and provide the potential for a more tax-efficient, cost-competitive, and transparent way to access Touchstone investment strategies with no investment minimum. More information can be found at Touchstone ETFs.
Touchstone’s commitment to being Distinctively Active means executing a fully integrated and rigorous process for identifying and collaborating with best-in-class asset managers to sub-advise the firm’s funds. The four new Touchstone ETFs will be sub-advised by Fort Washington Investment Advisors, a long-time sub-advisor of the Touchstone Funds.
“We are excited to continue our relationship with Touchstone through the launch of four ETFs,” added Maribeth S. Rahe, president and CEO of Fort Washington, in the release. “We believe specialization is required in increasingly complex markets, and we look forward to employing uncompromised focus with Touchstone to bring these investments forward.”
For more news, information, and strategy, visit the Active ETF Channel.