TCW Launches Two New Active ETFs and Converts
Three Mutual Funds to Active ETFs, Allowing Investors and Wealth
Managers More Options to Access Fixed Income Strategies
The TCW Group, a leading global investment firm, announced today
a significant expansion of TCW’s suite of actively managed ETFs to
advisors, investors, and institutions, with the launch of two new
fixed income exchange-traded funds (ETFs) and the conversion of
three other fixed income mutual funds to ETFs.
“For more than 50 years, investors have trusted TCW to provide
active strategies across fixed income, equities, emerging markets,
and alternative investments,” said Jennifer Grancio, Global Head of
Distribution at TCW. “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 TCW Fixed Income ETF expansion consists of:
Two new actively managed fixed income ETFs:
- TCW Multisector Credit Income ETF (MUSE), which seeks
long-term income with the flexibility to invest across high-yield
bonds, senior loans, and emerging market credit, adjusting sector
allocations based upon changing market conditions and relative
value.
- TCW AAA CLO ETF (ACLO), which seeks to generate current
income and preserve capital by providing access to the
institutional AAA-rated CLO market.
Three mutual funds that have been converted to actively
managed fixed income ETFs:
- TCW High Yield Bond ETF (HYBX), formerly the TCW High
Yield Bond Fund, which seeks to generate income and achieve above
average total return consistent with reasonable risk over a full
market cycle, by allocating risk to a diverse portfolio of high
yield bonds.
- TCW Corporate Bond ETF (IGCB), formerly the TCW MetWest
Corporate Bond Fund, which seeks to maximize long-term total return
by allocating to U.S. investment-grade corporate bonds.
- TCW Senior Loan ETF (SLNZ), formerly the TCW MetWest
Floating Rate Income Fund, seeks to generate current income and
preserve capital by providing access to the institutional senior
loan market.
The new ETFs are characterized by focused bottom-up issue
selection, active sector rotation, and opportunities across a
broader fixed-income investment universe. As actively managed
strategies, TCW portfolio managers will adjust portfolio
allocations over time to take advantage of changing market
conditions. TCW will utilize bottom-up issue selection to add alpha
by identifying issues with superior return profiles. The goal is to
provide investors with transparency, intraday trading, and price
discovery.
“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,” said Jeffrey T. Katz, Managing
Director, Fixed Income, at TCW. “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.”
Our new ETFs join the current fixed income offering TCW
Flexible Income ETF (FLXR) a multi-sector bond fund that seeks
to generate consistent income through the flexibility to invest
across sectors, dynamically shifting allocations based on changing
market conditions and relative value.
Additionally, these fixed income opportunities join TCW’s
current equity ETFs franchise:
- TCW Artificial Intelligence ETF (AIFD), which invests in
companies across sectors leading the development and
commercialization of artificial intelligence technology.
- TCW Compounders ETF (GRW), which invests in industry
leading companies with predictable business models generating
consistent free cash flow and compounding returns for the
long-term.
- TCW Transform Supply Chain ETF (SUPP), which invests in
companies across sectors that are driving and benefiting from the
relocalization of global supply chains to North America.
- TCW Transform Systems ETF (NETZ), which invests in
companies across sectors that are driving and benefitting from the
energy transition.
- TCW Transform 500 ETF (VOTE), a low-cost, passive market
cap fund, capturing over 80% of the U.S. publicly traded stocks. By
actively voting and directly engaging companies on material issues
we are driving long-term value.
For more information, please visit
https://www.tcw.com/Products/ETFs.
About The TCW Group
TCW is a leading global asset management firm with a broad range
of products across fixed income, alternative investments, equities,
and emerging markets with over half a century of investment
experience. Through its ETFs, TCW MetWest Funds, and TCW Funds, TCW
manages one of the largest fund complexes in the U.S. TCW’s clients
include many of the world’s largest corporate and public pension
plans, financial institutions, endowments and foundations, as well
as financial advisors and high net worth individuals. For more
information, please visit www.tcw.com.
This communication is not a solicitation of proxy. This
communication is for informational purposes only and does not
constitute an offer of any securities for sale. No offer of
securities will be made except pursuant to a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended.
All investments involve risk, including the possible loss of
principal. There is no guarantee that the investment objective of a
Fund will be achieved. Past performance is no guarantee of future
results.
Before investing you should carefully consider the fund’s
investment objectives, risks, charges, and expenses. This and other
information is in the prospectus, a copy of which may be obtained
from etf.tcw.com. Please read the prospectus carefully before you
invest.
Fixed income investments entail interest rate risk, the risk of
issuer default, issuer credit risk, and price volatility risk.
Funds investing in bonds can lose their value as interest rates
rise and an investor can lose principal.
The Fund’s investments denominated in foreign currencies will
decline in value if the foreign currency declines in value relative
to the U.S. dollar. Fund share prices and returns will fluctuate
with market conditions, currencies, and the economic and political
climates where the investments are made. MBS related to floating
rate loans may exhibit greater price volatility than a fixed rate
obligation of similar credit quality. The market for floating rate
loans may be illiquid, making it difficult for the Fund to
determine the true value of a loan, or to sell its interest in a
failing loan promptly or at a profitable price. The collateral for
secured loans may be insufficient to cover a default, and the Fund
may have limited remedies when a borrower defaults.
High-yield (unrated or rated below-investment grade) loans and
bonds have greater credit risk and more volatility than debt
instruments rated investment grade. The risk of loss is even
greater for unsecured loans. The Fund’s use of leverage (borrowing)
and derivatives may increase the volatility of the Fund’s returns.
Although the floating rate loans are intended to provide creditors
with protection against rising interest rates, some of the debt
securities in which the Fund invests will be subject to interest
rate risk and may decline in value when interest rates rise. Equity
investments entail equity risk and price volatility risk.
The value of stocks and other equity securities will change
based on changes in a company’s financial condition and in overall
market and economic conditions. The value of the Fund’s share price
will fluctuate up or down based on the value of the portfolio
holdings, which can be affected by these risks. The Fund’s use of
leverage (borrowing) and derivatives may increase the volatility of
the Fund’s returns.
The ETFs are advised by TCW Investment Management Company LLC.
Distributed by Foreside Financial Services, LLC. Effective October
13, 2023, TCW acquired the Transform ETF business from Engine No. 1
and the funds’ adviser became TCW Investment Management Company
LLC. Prior to that date, the funds’ adviser was Fund Management at
Engine No. 1 LLC.
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version on businesswire.com: https://www.businesswire.com/news/home/20241118345121/en/
Media: Doug Morris Head of Corporate Communications
+1-213-244-0509 doug.morris@tcw.com
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