A Closer Look At A New Actively Managed Bond Fund

TETF (ETF Industry & Financial Services, Expense Ratio 0.64%) launched today, and fund literature suggests the high level of growth not only in ETF fund offerings that have occurred over time in recent years, but the proliferation of ETF issuers themselves.

According to Toroso, the manager behind the product, there are presently seventy-eight ETF sponsor companies, and from time to time we like to profile some of the newer entrants or lesser known participants in this camp since it can be difficult for one to monitor all new fund offerings, all the time.

We will look to cover TETF itself in more depth in this piece in the near future once it registers some live daily trading history, but today we look at one of the newer entrants to the ETF sponsor space that has been a mainstay however in ETF investment management for several years now before their foray into issuance, VRTS (Virtus Investment Partners Inc., 2.28% weighting in TETF). We have covered several ETFs issued by Virtus in the past including NFLT (Newfleet Multi-Sector Unconstrained Bond, Expense Ratio 0.80%), UTES (Reaves Utilities, Expense Ratio 0.95%), and PMPT (iSectors Post-MPT Growth, Expense Ratio 1.55%), all of which have debuted in the 2015-2016 timeframe.

Today we look at a second fund from Newfleet that flies the Virtus banner known as BLHY (Virtus Newfleet Dynamic Credit, Expense Ratio 0.68%, $134 million in AUM). The fund debuted at the beginning of December of last year and in a relatively short period of time has rallied up a respectable level of assets, making it the second largest fund in the Virtus ETF family in terms of asset size across six funds. According to fund literature:

“The fund has the potential to generate competitive total return from both income and capital appreciation, as well as to provide a hedge against rising interest rates. The fund offers investors the opportunity to outsource the complexity of allocating between two rapidly converging non-investment-grade credit sectors-high yield corporate bonds and floating rate bank loans-to a single manager with deep expertise in both asset classes and longstanding experience managing multi-sector portfolios.”

The Virtus Newfleet Dynamic Credit (NYSE:BLHY) was trading at $25.06 per share on Friday afternoon, up $0.01 (+0.04%). Year-to-date, BLHY has gained 0.20%, versus a 5.04% rise in the benchmark S&P 500 index during the same period.

BLHY currently has an ETF Daily News SMART Grade of NR (Not Rated), and is unranked of 29 ETFs in the Intermediate-Term Bond ETFs category.

Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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