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BondBloxx launches high yield bond sector rotation ETF sub-advised by Macquarie Asset Management
News provided byBondBloxx Investment Management Corporation
Sep 19, 2023, 8:30 AM ET
First of its kind active ETF allocates among high yield bond sector ETFs
LARKSPUR, Calif., Sept. 19, 2023 /PRNewswire/ -- BondBloxx Investment Management announces the launch of the BondBloxx USD High Yield Bond Sector Rotation ETF (HYSA), which began trading on the NYSE Arca on September 18. This active ETF is the first of its kind, offering access to a high yield bond sector rotation strategy that allocates among precise high yield bond sector ETFs and seeks to maximize total return. Macquarie Asset Management serves as the fund's sub-adviser, a role that leverages their extensive experience in active high yield bond portfolio management, research, and risk management, and builds on the partnership announced with BondBloxx earlier this year.
"We're excited to expand the fixed income investor toolkit by providing a high yield sector rotation strategy with the transparency, liquidity, and cost efficiency of an ETF," said BondBloxx Co-Founder Tony Kelly. "Investors now have the flexibility to implement a high yield sector rotation strategy in one trade, alongside the ability to execute precise views with BondBloxx's existing sector-specific high yield bond ETFs."
The U.S. high yield bond market has historically exhibited wide variations in returns across industry sectors, with a range exceeding 13% between the best and worst industry sectors over the past 25 years.1 This variance in returns is expected to continue, creating opportunities to outperform broad high yield benchmarks through a strategy that overweights and underweights specific sectors.
"In our role as sub-adviser for HYSA, we are building on our strategic partnership with BondBloxx, as we look to enhance the work their team is doing to offer fixed income investors more tools and greater sophistication in managing their portfolios," said Shawn Lytle, Global Head of Public Investments, Macquarie Asset Management.
There is currently over $1.3 trillion invested in U.S. high yield bonds, including more than $490 billion in mutual funds and ETFs focused on high yield strategies.2 HYSA is the first ETF that offers investors the opportunity to capture outperformance by making active allocations across a range of high yield bond sector ETFs. "This is another example of BondBloxx's mission to use the ETF technology to offer more choice for fixed income investors, including those seeking active strategies," said Tony Kelly.
About BondBloxx Investment Management Corporation
BondBloxx Investment Management Corporation ("BondBloxx") is the first ETF issuer to focus solely on fixed income, offering a range of exposures spanning U.S. Treasuries, sector and credit rating-specific high yield bonds, and emerging markets bonds. To learn more about BondBloxx's fixed income-first mission, visit BondBloxxETF.com. For press inquiries, please email email@example.com BondBloxx is a registered investment adviser and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements.
Carefully consider the Funds' investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Funds' prospectus or, if available, the summary prospectus, which may be obtained by visiting bondbloxxetf.com. Read the prospectus carefully before investing.
Nothing in this statement is intended to, nor will, constitute an offer (or an invitation to make an offer) to buy, sell or otherwise transact in any investment fund and/or strategy referred to on the Website or any other security or financial instrument, or to provide any investment services or advice in any jurisdiction.
There are risks associated with investing, including possible loss of principal. Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to decline. Investing in mortgage- and asset-backed securities involves interest rate, credit, valuation, extension and liquidity risks and the risk that payments on the underlying assets are delayed, prepaid, subordinated or defaulted on.
The views expressed are subject to change based on market and other conditions. This piece may contain certain statements that may be deemed forward looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.
The inception date for the BondBloxx USD High Yield Bond Sector Rotation ETF (the "Fund"), with the ticker HYSA, is September 18, 2023. On that date, the Fund acquired the assets and liabilities of the Highland iBoxx Senior Loan ETF (the "Predecessor Fund"), which went by the ticker SNLN, through a reorganization. Prior to the reorganization, the Predecessor Fund was advised by another investment advisor, had a different investment objective, and was a passively managed fund that sought to track the performance of the Markit iBoxx Liquid Leveraged Loan Index. Following the reorganization, the Fund is now an actively managed fund that seeks to provide total return by primarily investing its assets in U.S. dollar-denominated, high yield corporate bonds in the various sectors of the fixed income securities market through other exchange-traded funds (ETFs).
Distributor: Foreside Fund Services, LLC
1 Source: ICE Data Services, data period spans 1997-2022.
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SOURCE BondBloxx Investment Management Corporation
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