TCW Group Adds 5 ETFs to Lineup
Legacy mutual fund complex leans on conversions to capture active ETF market share.
TCW Group is expanding its steady push into the ETF space with two new actively managed ETFs and three ETF conversions from actively managed mutual funds.
The $203 billion Los Angeles-based asset manager, which has managed mutual funds and separate accounts for over 50 years, first entered the ETF space last year through the acquisition of Engine No. 1’s Transform ETF platforms, which included three ETFs that combined for nearly $650 million.
The new ETFs, which started trading Monday morning, are the TCW Multisector Credit Income ETF (MUSE), the TCW AAA CLO ETF (ACLO), and the following mutual fund conversions, the TCW High Yield Bond ETF (HYBX), the TCW Corporate Bond ETF (IGCB), and the TCW Senior Loan ETF (SLNZ).
This brings TCW’s total ETF lineup to 11 through mutual fund conversions, launches, and the Engine No. 1 acquisition.
TCW Group Focuses on Mutual Fund Conversions
Jennifer Grancio, TCW’s global head of distribution, said the company has no plans to “flood the market” with new ETFs, but that it will continue to strategically introduce ETFs where it sees opportunities, which includes mutual fund conversions.
“The lovely thing about mutual fund conversions is you can bring the track record with you,” she said, citing the importance of a three-year track record when it comes to active strategies.
“Where we can, we’ll take a mutual fund and convert it,” Grancio added. “The expansion of our ETF suite provides investors with a broader range of precision products that allow investors to capitalize on attractive alpha opportunities while actively seeking to mitigate downside risk.”
With just one index product, TCW is primarily an asset manager that specializes in active fixed income, which is a reputation Grancio plans to leverage.
“I think you’ll see us do more in both equity and fixed income,” she said. “We think indexing has let people down a little bit, and we think people need active on the fixed income side of the portfolio.”