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Deutsche Asset Management Expands High-Yield ETF Suite: Portfolio Products

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Deutsche Asset Management announced the addition of three Xtrackers exchange-traded funds (ETFs) to its high yield suite – Xtrackers Short Duration High Yield Corporate Bond ETF (SHYL), Xtrackers High Beta High Yield Bond ETF (HYUP) and Xtrackers Low Beta High Yield Bond ETF (HYDW).

The three new products will provide investors with exposure to different levels of credit and interest rate risk for more customizable risk allocation in their portfolios.

HYUP offers investors access to lower credit quality, higher beta bonds, while HYDW provides access to lower beta bonds. Through SHYL, investors will have benchmark exposure to short-duration high-yield bonds.

 “In today’s low-interest rate environment, fixed income investors are looking for new sources of yield,” said Fiona Bassett, head of passive asset management, in a statement. “Our expanded Xtrackers suite of high-yield bond ETFs uses rules-based strategies to provide exposure to different levels of credit and interest rate risk, allowing investors to manage credit and duration exposure for a more customized solution.”

SHYL seeks to track the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market 0-5 Year Index. HYUP seeks to track the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market High Beta Index. HYDW seeks to track the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market Low Beta Index.

Solactive Expands Family of USD High-Yield Corporates Indexes

Solactive is adding three new indexes to its family of high-yield corporate bond indexes, which have been developed as the basis of those three new Xtrackers ETFs.

The three indexes are the Solactive USD High Yield Corporates Total Market 0-5 Year Index (SOLHYCST), the Solactive USD High Yield Corporates Total Market Low Beta Index (SOLHYCLB), and the Solactive USD High Yield Corporates Total Market High Beta Index (SOLHYCHB).

Each index aims to offer exposure to different segments of the high yield corporate bond market denominated in U.S. dollars.

The first index, SOLHYCST, tracks the performance of short-duration high-yield bonds with term to maturity of maximum five years. Instead, SOLHYCHB mirrors the performance of lower credit quality higher-beta bonds, while SOLHYCLB of lower-beta bonds, with beta representing a bond’s level of volatility, and higher/lower beta generally corresponding to higher/lower yield.

The indexes are respectively tracked by new Xtrackers ETFs – SHYL, HYUP and HYDW.

The indexes are weighted by market capitalization with a 3% cap per issuer and are readjusted monthly.

Crossmark Global Investments Launches First Socially Responsible Covered Call Mutual Fund

Crossmark Global Investments launched the Crossmark Steward Covered Call Income Fund (SCJIX), which seeks to provide investors with dividend income and options premium income, with the potential for capital appreciation and less volatility than the broad equity market.

For the Steward Covered Call Income Fund, the portfolio management team buys a basket of stocks and writes (or sells) call options to cover the stock positions. In doing so, the strategy is intended to enhance portfolio returns in certain market conditions and reduce volatility.

As the first buy/write mutual fund in the Steward Family of Funds, the fund will apply Crossmark’s proprietary Steward Screens, which screen for widely held traditional values, excluding companies materially involved with alcohol, tobacco, gambling, life ethics, and mature content. The same screening process is applied to the five other values-based equity and fixed income funds that together constitute Crossmark’s Steward Fund suite.  

Catalyst Funds Partners With BNP Paribas to Create Alternative, Multi-Asset Index

Catalyst Funds, an alternative-focused mutual fund company, partnered with BNP Paribas to create the BNP Paribas Catalyst Systematic Alpha Index. Catalyst also launched the Catalyst Systematic Alpha Fund (ATRAX), which provides exposure to the newly-created BNPP CASA Index.

The BNPP CASA Index allocates between seven different strategies developed by BNP Paribas’ Quantitative Investment Strategies group, each specifically designed to harvest nontraditional sources of returns.

Using a rules-based, risk-budget model, the BNPP CASA Index systematically allocates across each of these strategies, as frequently as daily, designed to adapt to various market conditions. Although the BNPP CASA Index synthetically invests across equities, fixed-income, commodities and currencies, it is designed to offer a low correlation to these markets.

The ATRAX fund invests in securities that provide exposure to the BNPP CASA Index, mainly non-exchange-traded total return swap contracts. The fund also employs active management of a fixed income portfolio. The fund’s strategy, like the BNPP CASA Index, seeks to achieve long-term capital appreciation with low correlation via exposure to systematic positions that generate uncorrelated alpha through a multi-risk premia strategy.

Swell Launches New Account Experience

Swell Investing announced a completely redesigned interactive user interface with the goal to connect investors more deeply to the companies in their portfolios and empowering them to learn about the positive impact they have on the world. 

Swell developed its new interface following in-depth, qualitative interviews with more than two dozen investors who expressed an overwhelming interest in expanding knowledge of their investments beyond performance to include how the companies in their portfolios are shaping the world. 

In a study released last fall, Swell Investing found that nearly half (49%) of millennials who invest weren’t able to name the top three companies in their portfolio.

After signing in to the platform, investors in Swell’s six portfolios can now view: market analysis, which includes exclusive insights help the Swell community relate overall market movements to investment performance; investor reading list, which has news and insights illustrating how each portfolio company is engaged in impact and accountable to Swell’s selection criteria; and portfolio pages, where investors can now dive deep into each of the portfolios in their Swell mix and learn more about the portfolio’s performance and the companies within it.

Efficient Advisors To Offer DFA Funds

Efficient Advisors now offers Dimensional Fund Advisors mutual funds to the advisors using the Efficient Advisors turnkey asset management platform (TAMP).

Efficient Advisors’ portfolio models will deploy Dimensional’s mutual funds to build factor-based portfolios at various levels of risk so advisors can address their clients’ goals and needs.

Working with Dimensional will also give Efficient Advisors’ clients access to the academic research, resources and experience that Dimensional’s team offers.

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