ETFs have come a long way since the ETF rule hit back in 2019. Still, investors look out for ETFs that have proved themselves, and one way to do that is the three-year milestone. Those three years allow a strategy to gather assets, get a track record, and prove their worth. With fixed income back, investors might consider adding a core fixed income ETF set to hit its own three-year mark.
That strategy, the Avantis Core Fixed Income ETF (AVIG), launched in 2020 and turns three on October 13 this year. Since then, it’s hit more than $400 million in AUM, a milestone hit within the last month according to VettaFi. AVIG added $25.8 million in AUM in that time, combining price influence and fund flows. In fact, it’s added more than $200 million just over the last year in net inflows.
AVIG offers an active flavored core fixed income exposure for a 15 basis point fee. While some of the largest core fixed income exposures cost a bit less, active ETFs often charge more. That positions AVIG as an intriguing alternative, investing across U.S. and non-U.S. issuers.
AVIG invests in government, corporate, and other agency securities. The core fixed income ETF seeks high expected returns based on each bond’s expected income and capital appreciation. AVIG’s managers categorize bonds into groups based on sectors, credit rating, duration and aiming for a two-year average weighted maturity. AVIG can also invest in credit default swaps and total return swaps, too.
The ETF has returned 2.9% YTD, outperforming its ETF Database Category Average and its Factset Segment Average. For those investors looking for duration, yield, and a core holding, AVIG merits a look. Keep an eye on the core fixed income ETF as it nears its three-year milestone.
For more news, information, and analysis, visit the Core Strategies Channel.