Active Bond ETF Boom Continues With Two New Funds Targeting Bloomberg Aggregate
Natixis Loomis Sayles Total Return Bond ETF LSTB | 0.00 | |
Natixis Loomis Sayles Dynamic Core Plus ETF LSCP | 0.00 | |
Jp Morgan ETF Trust JCPB | 0.00 | |
PIMCO Multisector Bond Active Exchange-Traded Fund PYLD | 0.00 |
Natixis Investment Managers and Loomis Sayles & Company have expanded their actively managed ETF lineup with the launch of two fixed income funds: the Natixis Loomis Sayles Total Return Bond ETF (NYSE:LSTB) and the Natixis Loomis Sayles Dynamic Core Plus ETF (NYSE:LSCP).
Both funds began trading on Wednesday.
The launches come as investor appetite for actively managed bond ETFs continues to accelerate, with managers increasingly packaging established mutual fund strategies into ETF wrappers that offer greater tax efficiency, transparency, and intraday liquidity.
Key Features
- Expense ratio: 0.39% for both funds
- Objective: Seek to outperform the Bloomberg U.S. Aggregate Bond Index.
- Benchmark exposure: The index tracks the U.S. investment-grade bond market, including U.S. Treasuries, corporate bonds, and asset-backed securities
- LSTB strategy: Invests across multiple fixed income sectors, maturities, and credit ratings to pursue total return through capital appreciation and income
- Research approach: Focuses on identifying undervalued bonds using proprietary issuer credit research, with macro and interest rate views serving as secondary considerations
- LSCP strategy: Maintains an effective duration within about 1.5 years of the benchmark to manage interest rate sensitivity
- Portfolio construction: Combines benchmark sectors with out-of-benchmark “Plus” sectors using top-down macroeconomic analysis for sector allocation, duration, and liquidity, alongside bottom-up fundamental security selection
- Built on proven strategies: Based on flagship Loomis Sayles mutual funds managing roughly $25 billion in combined assets
Loomis Sayles said the new ETFs build on two flagship mutual fund strategies with approximately $25 billion in combined assets, extending the firm’s long-standing active fixed income expertise to ETF investors.
The category has attracted significant flows this year, led by the PIMCO Multisector Bond Active ETF (NYSE:PYLD) with $4.4 billion in inflows, according to ETFDb, and the JPMorgan Core Plus Bond ETF (NYSE:JCPB) with $4.1 billion.
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