Touchstone Investments launched the Touchstone Securitized Income ETF (NYSE Arca: TSEC), an actively managed, fully transparent fixed income fund. Fort Washington Investment Advisors will subadvise the fund.
TSEC seeks capital appreciation investing in a comprehensive framework of investments in well-positioned securitized fixed income securities. This includes residential mortgage-backed securities, commercial mortgage-backed securities, asset-backed securities, and collateralized loan obligations.
The fund’s holdings may include Treasuries, U.S. government agency securities, securities of government-sponsored enterprises, municipal bonds, and cash equivalents.
See more: “Touchstone Launches Its Dividend Select ETF”
TSEC offers a more tax-efficient, cost-competitive, and transparent way to access Touchstone’s investment strategies with no investment minimum. Additionally, the fund expands Touchstone’s lineup of Distinctively Active branded ETFs.
Navigating a Complex Marketplace With Active Management
“Fixed income ETFs have been punching above their weight as more advisors gain comfort with using the products to support asset allocation goals,” said VettaFi’s head of research Todd Rosenbluth. “Many have been turning to active ETFs in 2023 as interest rates have risen, making it harder to navigate the bond market alone.”
Fort Washington’s president and CEO Maribeth S. Rahe said specialization can “generate returns in today’s increasingly complex marketplace.”
“We are honored to expand our partnership with Touchstone through the launch of TSEC,” Rahe added. “And we look forward to creating opportunities for investors seeking compelling risk-adjusted returns from securitized products.”
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