Daily ETF Watch: Low Duration Fund Planned
Guggenheim files for an active limited-duration ETF.
The fund’s parameters include specific limitations and some guidelines, including that it cannot invest more than:
- 35% of its portfolio in emerging market debt
- 35% of its portfolio in debt that is less than investment grade
- 20% of its portfolio in asset- or mortgage-backed securities
- 20% of its portfolio in bank or corporate loans
The fund manager’s investment process relies heavily on research into individual securities and their peer groups, as well as market conditions and interest rates, among other criteria, the prospectus noted.
The filing did not include an expense ratio or ticker, but the principal listing exchange will be the Nasdaq.
The fund outlined in the filing is very similar in approach to the SPDR DoubleLine Short Duration Total Return Tactical ETF (STOT), which launched yesterday and includes Jeffrey Gundlach among its management team. STOT targets a duration of three years or less.
Contact Heather Bell at [email protected].