Pacific Global launches new actively managed income ETFs

Oct 29th, 2019 | By | Category: Alternatives / Multi-Asset

Pacific Global Asset Management has launched two new actively managed ETFs in the US.

Pacific Global launches new actively managed income ETFs

Pacific Global now offers three income-focused ETFs.

Sub-advised by affiliate Cadence Capital Management, the funds offer income solutions by investing in high-yield bonds globally as well as international dividend-paying companies.

They are the Pacific Global Focused High Yield ETF (FJNK US) and the Pacific Global International Equity Income ETF (IDY US).

Both have listed on NYSE Arca and come with expense ratios of 0.39%.

Global high yield

The Pacific Global Focused High Yield ETF invests in approximately 60 to 90 high-yield debt securities with a focus on highly liquid US dollar-denominated issues from corporate issuers around the world.

The fund may also allocate a small portion of its holdings to senior loans, floating-rate notes, investment-grade bonds, asset-backed securities, and money-market instruments.

Its benchmark is the Bloomberg Barclays US High Yield Very Liquid Index.

International dividend

The Pacific Global International Equity Income ETF invests in large and mid-cap companies from the MSCI EAFE Index universe of stocks.

The fund selects companies with above-average or improving dividends and favours those firms that demonstrate financial strength through strong balance sheets, predictable earnings and cash flow growth, and a history of dividend growth.

The ETF is expected to hold between 200 and 450 constituents which will approximately be weighted by market cap. The weight of individual securities will be capped at 2.5%.

US equity income

The funds complement Pacific Global’s debut product – the Pacific Global US Equity Income ETF (USDY US) – which launched on NYSE in February of this year.

This fund is also actively managed by Cadence Capital and invests in quality dividend companies listed in the US. Its expense ratio of 0.29% is slightly cheaper than the two new additions.

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