Keith VanOrden, Head of US Retail for TCW, joined Keith Black, Managing Director of RIA Channel, to discuss concentrated active ETFs in the equity and fixed income markets.
TCW is bringing its institutional legacy of managing large fixed-income portfolios and concentrated equity portfolios to retail investors.
Over the last 10 to 15 years, passive ETFs have received substantial asset inflows. Because many investors have large allocations to these index funds, they may wish to diversify with funds that have differentiated exposures. Managers of concentrated active equity ETFs are not hugging the benchmark but take meaningful exposures to stocks they know very well.
TCW released four concentrated active fixed-income ETFs covering individual bond sectors and two ETFs covering core and non-core fixed-income sectors. The TCW Multisector Credit Income ETF (MUSE) allows investors to add exposure to non-core fixed-income sectors, such as high-yield bonds, senior loans, and emerging market credit.
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