Newcomer Offers ‘Distinctively Active’ ETFs
Active manager Touchstone Investments, an affiliate of the Western & Southern Financial Group, entered the ETF space this week with the Monday launch of the Touchstone Strategic Income Opportunities ETF (SIO), and it is queued up to launch another three ETFs in the coming weeks.
SIO comes with an expense ratio of 0.65% and lists on the NYSE Arca.
Touchstone describes its approach as “distinctively active,” combining risk management with high-conviction positions. The four ETFs planned for its initial launches use the same strategies as some of the firm’s existing mutual funds.
Fort Washington Investment Advisors serves as a subadvisor and looks to generate a high level of current income while preserving investor capital. SIO invests in a range of fixed income securities of both investment-grade and below-investment-grade credit quality. The fund’s managers use a bottom-up approach to making high-conviction security selections, while also paying attention to sector diversification and the portfolio’s risk level, according to the fund’s prospectus.
The ETF is an alternative to the Touchstone Strategic Income Opportunities Fund, which has more than $277 million in assets under management across its share classes. The expense ratios for each share class of the mutual fund range from 0.65% to 1.71%.
The ETFs set to launch over the next week or so and their expense ratios are as follows:
Touchstone US Large Cap Focused ETF (LCF), 0.69%
Touchstone Dividend Select ETF (DVND), 0.67%
Touchstone Ultra Short Income ETF (TUSI), 0.39%
Contact Heather Bell at heather.bell@etf.com
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