Touchstone Investments, an affiliate of the Western & Southern Financial Group, has introduced a new actively managed ETF providing exposure to a diversified portfolio of securitized fixed income instruments.
Blake Moore, President and CEO of Touchstone Investments.
The Touchstone Securitized Income ETF (TSEC US) has been listed on NYSE Arca with an expense ratio of 0.39%.
Touchstone adopts a fully integrated process for identifying and collaborating with best-in-class asset managers to sub-advise its funds – the new Touchstone Securitized Income ETF is overseen by Fort Washington Investment Advisors, a long-time sub-advisor of several existing Touchstone mutual funds.
In managing TSEC, Fort Washington seeks to deliver capital appreciation by investing in residential and commercial mortgage-backed securities, asset-backed securities, and collateralized loan obligations. The ETF will seek to maintain a high-quality profile by only investing up to 15% of its assets in securities with credit ratings below investment grade.
The fund may also invest up to 20% of its assets in US Treasuries, agency securities, government-sponsored enterprises, municipal bonds, and cash equivalents.
In building the portfolio, Fort Washington utilizes a relative value focus that emphasizes moderate risk opportunities across non-index sectors.
Blake Moore, President and CEO of Touchstone Investments, said: “The launch of the Touchstone Securitized Income ETF marks the natural expansion of our Distinctively Active investment philosophy, offering more investment options positioned to provide excess returns and complement many investment portfolios. We look forward to continuing our partnership with Fort Washington, which shares our unwavering commitment to investors’ best interests.”
Maribeth S. Rahe, President and CEO of Fort Washington, added: “We believe specialization is required to generate returns in today’s increasingly complex marketplace. We are honoured to expand our partnership with Touchstone through the launch of TSEC, and we look forward to creating opportunities for investors seeking compelling risk-adjusted returns from securitized products.”
Touchstone Investments made its ETF debut in August 2022 by introducing a suite of four actively managed funds delivering core investment strategies.