TCW Debuts Suite of 5 Active Fixed Income ETFs | ETF Trends

The TCW Group nearly doubled the size of its ETF lineup today, launching five new funds on the NYSE Arca exchange. Each of the new products offer actively managed exposure to a portion of the fixed income markets. And three of the ETFs in the group are conversions from mutual funds.

“It’s great to see TCW expand their lineup of ETFs. The firm has a strong heritage of active management to leverage and meet advisors where they want to invest in the ETF market,” said VettaFi Head of Research Todd Rosenbluth.

The TCW Multisector Credit Income ETF (MUSE) and the TCW AAA CLO ETF (ACLO) are both brand-new products, carrying expense ratios of 0.56% and 0.20%, respectively. Meanwhile, the TCW High Yield Bond ETF (HYBX), the TCW Corporate Bond ETF (IGCB) and the TCW Senior Loan ETF (SLNZ) all had previous lives as mutual funds. While HYBX has an expense ratio of 0.50%, IGCB charges 0.35%. SLNZ is the most expensive of all five fixed income strategies, with an expense ratio of 0.65%. It is also the largest of the three conversions, entering the ETF space with $294 milllion in assets under management.

“Using our decades of experience in fixed income, we apply a key understanding of the credit markets to apply diligent issue selection matched with an active approach that is responsive to changes across the economic cycle,” said TCW Managing Director, Fixed Income Jeffrey T. Katz.

“These new ETFs are essential tools for investors and their clients to access opportunities in fixed income to serve as a potential consistent source of income, help stabilize and diversify a portfolio during periods of volatility, and have the ability to generate attractive total returns across market environments,” he added.

TCW has 50 years of experience in the management of fixed income portfolios. It leverages its team of 70 investment professionals in a collaborative investment process. Managers take into account cyclical and macro criteria while also incorporating bottom-up fundamental research, according to the firm.

The issuer now offers 11 different ETFs, the largest of which is the $718 million TCW Transform 500 ETF (VOTE).

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