Columbia Threadneedle Investments has broadened its active fixed income offering with two new transparent ETFs focused on opportunities within the US high yield corporate bond market.

Marc Zeitoun, Head of North America Product and Business Intelligence at Columbia Threadneedle Investments.

The Columbia US High Yield ETF (NJNK US) and Columbia Short Duration High Yield ETF (HYSD US) have been listed on NYSE Arca with expense ratios of 0.46% and 0.44%, respectively.

The primary distinction between NJNK and HYSD lies in their duration mandates: NJNK operates with an unconstrained duration, while HYSD maintains a dollar-weighted portfolio maturity of under five years and may invest heavily in floating rate loans to meet this requirement.

Both funds are driven by rigorous fundamental credit research, with a strong emphasis on risk management due to the high yield segment’s asymmetrical risk profile. They prioritize reducing exposure to the lowest quality, highest risk issuers while avoiding higher-rated, low-yielding securities.

Marc Zeitoun, Head of North America Product and Business Intelligence at Columbia Threadneedle Investments, said: “Our investment teams leverage decades of experience in fundamental research, bottom-up credit selection, and risk management to build high yield portfolios aimed at generating strong risk-adjusted returns while intentionally avoiding some of the riskiest segments of the high yield market.

“This commitment to original, independent research is central to our investment philosophy and how we deliver value to investors. With NJNK and HYSD, we expect to provide clients with investment solutions that offer greater potential for alpha relative to indexed benchmarks, in a wrapper that emphasizes tax efficiency and low cost.”