Natixis Investment Managers today launched its second ETF. The Natixis Loomis Sayles Short Duration Income ETF (LSST) is an actively managed fund that looks to provide current income while preserving capital, and will target a weighted average duration of one to three years.
LSST comes with an expense ratio of 0.38% and lists on the NYSE Arca. Loomis Sayles is the fund’s subadvisor.
The ETF’s portfolio will consist mainly of investment-grade debt securities, with up to 15% of the portfolio selected from the below-investment-grade space. It also holds only USD-denominated securities, including foreign-issued debt from developed and emerging markets.
According to the prospectus, the fund’s manager will take into account interest rates and Loomis Sayles’ outlook for interest rates, as well as the stability and volatility of an issue’s home market, issuer strength and current valuations.
LSST can invest in a wide variety of debt securities and can implement futures in its strategies. The prospectus also warns the fund could have high turnover that may result in capital gains taxes.
Natixis’s only other ETF is the Natixis Seeyond International Minimum Volatility ETF (MVIN), which launched in late 2016 and comes with an expense ratio of 0.55%.
Contact Heather Bell at [email protected]