Milliman plans to list two active exchange-traded funds to meet rising U.S. health care costs, the consulting firm announced Monday.
Milliman Financial Risk Management, which advises the retirement savings industry, intends to list the ETFs in next year's first quarter.
The Milliman Healthcare Inflation Guard ETF (MHIG) and the Milliman Healthcare Inflation Plus ETF (MHIP) will be the first members of an ETF lineup aimed at solving unaddressed financial risks for workers, retirees, companies, institutions and governments, the firm said.
The Milliman Healthcare Inflation Guard ETF will seek to meet the health care costs for an average individual utilizing a U.S. employer-provided health plan in the United States over time, while the Milliman Healthcare Inflation Plus ETF will aim to exceed U.S. health care cost inflation, the company said.
Both funds will carry 0.55% management fees, according to a preliminary prospectus filed with the Securities and Exchange Commission on Friday.
The ETFs will use a mix of health sector and related equities, government and corporate bonds, and alternatives, including commodities and liquid alts strategies, and a quantitative model that seeks to manage volatility to minimize portfolio losses during drawdowns, Milliman said.
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