Newfleet Asset Management and Virtus ETF Solutions, both affiliates of Virtus Investment Partners, have launched the actively managed Virtus Newfleet ABS/MBS ETF (VABS), which trades on the New York Stock Exchange.
The ETF, which has an expense ratio of 0.49%, seeks to generate income by investing primarily in short-duration, investment-grade securitized debt across asset-backed securities (ABS) and mortgage-backed securities (MBS), including commercial and residential MBS.
The fund expects to invest in asset-backed and mortgage-backed securities with competitive yield and current income across undervalued areas of securitized credit markets.
“We believe active management is a better option in the ABS and MBS sectors of the securitized credit markets, and our approach provides a wider investment opportunity set and much-needed diversification relative to traditional fixed income,” said Newfleet President and Chief Investment Officer David L. Albrycht. “As the demand for shorter duration, income-generating strategies grows, we can employ our relative value approach to exploit market inefficiencies.”
Roundhill Launches Streaming & Technology ETF
Roundhill Investments launched the Roundhill Streaming Services & Technology ETF (SUBZ), an actively managed ETF that invests in companies that manufacture or create the infrastructure necessary to facilitate streaming and that distribute or sell products or services related to the online streaming content space. The sectors include gaming, livestream, video content and audio.
SUBZ holds about 35 stocks, charges a 0.75% net expense fee and trades on the NYSE. Large-caps accounts for close to two-thirds of its holdings; small-caps, 28%; and mid-caps 9%. About half of its holdings are based in the U.S.; one-quarter are based in China and the remainder are in Japan, Sweden, South Korea and Canada.