2 Active Current Income ETFs Debut

The funds aim to provide monthly income via dividend ETF holdings.

Reviewed by: Dan Mika
Edited by: Dan Mika

Brokerage infrastructure provider DriveWealth today issued its first exchange-traded products: a pair of actively traded funds seeking to provide dividend payments each month through an artificial intelligence platform.

The DriveWealth Steady Saver ETF (STBL) and the DriveWealth Power Saver ETF (EERN) both debuted on the NYSE Arca Tuesday with expense ratios of 0.66% and 1.49%, respectively. STBL has a waiver of 20 basis points, while EERN’s is 48 basis points. Those discounts expire at the end of 2022.

Both funds invest approximately 85% of their holdings into other ETFs primarily holding fixed income products based on a strategy developed by subadvisor YieldX, while the rest of its investments are held in illiquid securities.

STBL is targeting annual distributions of 3%, while EERN is pitching a yield of 8%. YieldX Chief Investment Officer Stewart Russell said both funds have the same algorithmic strategy, but have different sets of investable products to choose from to hit their intended yield target.

DriveWealth Chief Product Officer Raakhee Miller told ETF.com that the two funds are being launched for savers and investors who want a higher yield for their parked dollars. The average interest rate for a bank savings account is 0.06%, according to a Bankrate survey earlier this month.

“They want to put their hard-earned money to work, and frankly, they deserve to have products and platforms that help them save,” she said.

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Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in Fort Collins, Colorado. Dan holds a bachelor's degree in journalism from Truman State University.