ETF issuer Columbia Threadneedle has filed with the SEC to bring a new bond-focused ETF to market, and its unique allocation structure makes it one to watch.
The Columbia Diversified Fixed Income Allocation ETF will track an index that invests in multiple bond sectors. Specifically, it’ll track the Beta Advantage Multi-Sector Bond Index, which coves six unique parts of the bond market:
- U.S. Treasury securities, global ex-U.S. Treasury securities,
- U.S. agency mortgage-backed securities,
- U.S. corporate investment-grade bonds,
- U.S. corporate high-yield bonds, and
- Emerging market sovereign and quasi-sovereign debt.
Specific allocations to each of these sectors is yet to be determined, but the index’s diversified makeup should make it appealing to a wide range of investors. The index will be rebalanced on a monthly basis.
The filing didn’t include information about an expense ratio, ticker, or listing exchange, so a lot of the specifics here are yet to be determined.
Columbia Threadneedle currently counts 14 ETFs on the U.S. market. Its largest offering, the $920 million Columbia Emerging Markets Consumer ETF (NYSE:ECON), was trading at $27.47 per share on Friday morning, up $0.10 (+0.37%). Year-to-date, ECON has gained 24.02%, versus a 11.33% rise in the benchmark S&P 500 index during the same period.
ECON currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #9 of 77 ETFs in the Emerging Markets Equities ETFs category.
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