Global investment firm TCW Group has bolstered its actively managed ETF lineup with the addition of five fixed income funds, including two entirely new ETFs and three conversions from existing mutual funds.
Jennifer Grancio, Global Head of Distribution at TCW.
Jennifer Grancio, Global Head of Distribution at TCW, commented: “For more than 50 years, investors have trusted TCW to provide active strategies across fixed income, equities, emerging markets, and alternative investments.
“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.”
The Funds
The $50 million TCW Multisector Credit Income ETF (MUSE US) seeks long-term income by dynamically allocating across high-yield bonds, senior loans, and emerging market credit. Sector allocations are adjusted based on market conditions and relative value. The fund’s expense ratio is 0.56%.
The $30m TCW AAA CLO ETF (ACLO US) targets current income and capital preservation by providing exposure to AAA-rated collateralized loan obligations (CLOs). Its expense ratio is 0.20%.
The $40m TCW High Yield Bond ETF (HYBX US) aims to deliver income and above-average total return, consistent with reasonable risk, over a full market cycle by investing in a diverse portfolio of high yield bonds. Its expense ratio is 0.50%.
The $10m TCW Corporate Bond ETF (IGCB US) seeks to maximize long-term total return through allocations to US investment-grade corporate bonds. Its expense ratio is 0.35%.
The $300m TCW Senior Loan ETF (SLNZ US) provides access to the institutional senior loan market, targeting current income and capital preservation. Its expense ratio is 0.65%.
These ETFs join TCW’s current fixed income offering which consists of the $450m TCW Flexible Income ETF (FLXR US), a multi-sector bond fund that seeks to generate consistent income by investing across multiple bond sectors, dynamically shifting allocations based on changing market conditions and relative value. Its expense ratio is 0.40%.
Jeffrey T. Katz, Managing Director of Fixed Income at TCW, emphasized the disciplined and fundamentals-driven approach underpinning the ETFs, particularly their bottom-up issuer selection strategy.
Katz said: “Using our decades of experience in fixed income, we apply a key understanding of the credit markets to apply diligent issue selection matched with an active approach that is responsive to changes across the economic cycle. These new ETFs are essential tools for investors and their clients to access opportunities in fixed income to serve as a potential consistent source of income, help stabilize and diversify a portfolio during periods of volatility, and have the ability to generate attractive total returns across market environments.”
Additionally, these fixed income ETFs complement TCW’s equity ETF franchise, which spans a diverse range of strategies, including thematic investments in cutting-edge technologies like artificial intelligence, transformative supply chain, and energy systems, as well as long-term compounders with consistent free cash flow.