ETF Watch: Northern Trust Plans Active Bond Fund

The actively managed FlexShares bond ETF will invest in investment-grade debt through other ETFs.
Reviewed by: Staff
Edited by: Staff

A recent filing from Northern Trust’s FlexShares unit outlines the firm’s plans for an actively managed bond ETF that will seek exposure to USD-denominated investment-grade debt primarily via other ETFs and registered investment companies. The FlexShares Core Select Bond Fund seeks to provide “attractive risk-adjusted performance,” according to the prospectus.

The fund will look to build a portfolio that achieves the optimal balance between total return and investment risk while taking into account liquidity and diversification as well as interest rates, the shape of the yield curve and credit spreads, the prospectus noted.

The fund may also engage in securities lending, but it can loan no more than one-third of the total portfolio value.

The filing did not include a ticker, expense ratio or listing exchange.

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