WisdomTree alongside Voya Investment Management Co. have announced the launch of their newest ETF, the WisdomTree Voya Yield Enhanced USD Universal Bond Fund (UNIY), that will trade on the Nasdaq.
UNIY seeks to offer investors exposure across the U.S. dollar-denominated bond market by tracking the Bloomberg US Universal Enhanced Yield Index while also enhancing yield within certain risk parameters. By looking across a larger range of bond sectors and widening the net to include a variety of asset classes, credit maturities, and credit quality, UNIY seeks to enhance the yield potential while still allocating its weighting to the more traditional investment-grade sectors of fixed income.
“Today marks another milestone in our relationship with Voya as we launch the WisdomTree Voya Yield Enhanced USD Universal Bond Fund, a collaborative effort reinforcing the demand for broad exposure to the entire US bond market and highlighting our commitment to pursue a better investment and financial experience through the quality of our products, solutions and engagement,” said Rick Harper, Chief Investment Officer, Fixed Income at WisdomTree, in the press release.
The index tracks bonds that either qualify as investment grade or high yield and weights the securities by market cap. The index includes bonds that are: U.S. investment grade debt; U.S. dollar denominated privately-placed securities; USD-denominated, publicly issued investment grade debt in developed markets outside the U.S. and in Eurobond markets; U.S. corporate high yield debt; and USD fixed-rate sovereign and corporate debt from emerging companies per the prospectus.
At launch, UNIY’s quality distribution is as follows: AAA at 57.27% weight, AA at 20.57%, A at 11.15%, BBB at 10.41%, and unknown at 0.60% per the website.
“Together we have designed a product that we believe is differentiated from the current market offering and is reflective of the growing demand for fixed income investments. Our shared belief in creating innovative client investment options is the cornerstone of our relationship with WisdomTree, and we look forward to continued success,” said Michael Beckerman, Head of Client Solutions and Co-Head of Client Advisory & Consultant Relations at Voya Investment Management Co. LLC in the press release.
Voya is the sub-advisor of the fund as well as a number of other WisdomTree funds, and UNIY carries an expense ratio of 0.15%.
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