BondBloxx, IR+M to Launch Tax-Aware Short Duration ETF

BondBloxx filed a registration statement for the BondBloxx IR+M Tax-Aware Short Duration ETF, which Income Research + Management will subadvise. The fund will seek attractive after-tax income, consistent with preservation of capital and prudent investment management.

The ETF will invest in a diversified portfolio of both municipal and taxable short duration fixed income securities. Normally, at least half of its assets are to held in munis that pay interest exempt from federal income tax.

See more: “The Benefits of Emerging Markets Debt

A Wider Perspective on Fixed Income

“Municipal bonds are an important tool for taxable clients. However, investors may overlook other opportunities,” said BondBloxx Co-founder Tony Kelly. “By adopting a wider perspective on portfolio construction, we can create a more comprehensive approach that seeks to maximize after-tax return.”

“The collaboration between BondBloxx and IR+M brings together experienced teams to develop fixed income solutions for clients,” he added.

The fund is IR+M’s first “branded fixed income ETF,” according to the firm’s Chief Strategy Officer Erinn King.

“We’re excited to broaden access to IR+M’s strategies by making them available to all investors,” she added. “Our respective firms offer complementary expertise and client focus, making BondBloxx a natural strategic partner of choice for IR+M.”

A Continually Growing Suite of ETFs

BondBloxx launched in October 2021 with the aim of developing precise fixed income ETFs. In February 2022, the issuer launched its debut funds: a suite of seven industry sector-specific high yield bond ETFs. Now, the firm offers a diverse range of funds spanning U.S. Treasuries, high yield bonds, and emerging market bonds. Once listed, the new fund will bring Bondbloxx’s suite of fixed income products to 21 ETFs.

The issuer has demonstrated notable growth in a relatively short period, having recently surpassed $2 billion in assets. VettaFi’s Head of Research Todd Rosenbluth called BondBloxx “one of the more innovative providers of fixed income ETFs.”

“BondBloxx has continued to launch innovative products since its founding and has expanded the ETF universe with targeted products where there is white space,” he added. “Their broad range of fixed income funds makes it a firm to watch as the asset category grows.”

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