Specifically, the fund may hold corporate debt securities, including notes, bonds, debentures and commercial paper, are fixed income securities usually issued by businesses to finance their operations. The securities may be secured or unsecured, may be issued by U.S. or foreign entities and may carry variable or floating rates of interest. The fund may invest in Rule 144A securities. The fund may also invest in other short-duration fixed-income securities. Additionally, the ETF may include up to 15% of its assets in mortgage-backed securities and asset-backed securities.
WINC will try to maintain an effective duration of three years or less. The ETF’s performance is reference benchmarked against the Bloomberg Barclays 1-5 Year Corporate Bond Total Return Index.
The fund will follow an “all-weather” approach to income generation to target higher-quality income opportunities. The fund’s go anywhere methodology will allow it to have the ability to look beyond core holdings and expand the opportunity set to potentially provide attractive income throughout different market cycles.
“We are pleased to add this exciting new actively managed income-seeking fund, offered in a cost-effective, investor-friendly ETF wrapper,” Buchanan said. “WINC targets short-duration credit exposure while leveraging Western Asset’s global investment capabilities and strong risk management program, employing an active process that is both top-down and bottom-up to help identify attractive credit and income opportunities while actively managing risk. While always opportunistic, we are dedicated to providing investors with a long-term fundamental value discipline.”
For more information on new fund products, visit our new ETFs category.