On Friday, IndexIQ launched the actively managed IQ MacKay Securitized Income ETF (NYSE Arca:SECR), which invests in investment-grade mortgage-related and asset-backed securities. The new fund is sub-advised by members of the global fixed income team at New York Life Investment Management subsidiary MacKay Shields.
“Most ‘Core’ and ‘Core Plus’ fixed income strategies tend to have allocations to securitized debt closely aligned with the Bloomberg Aggregate Index. With an actively managed approach overseen by the highly experienced portfolio managers on MacKay’s Global Fixed Income team, SECR seeks a diversified source of potential outperformance and enhanced risk-adjusted return potential” noted Neil Moriarty, one of SECR’s managers and co-head of the global fixed income team.
According to the fund’s press release, the team has nearly five years of experience managing structured product strategies. The managers implement both top-down and bottom-up analysis when selecting securities for the portfolio.
Moriarty says the team seeks out structured products that offer diversification, better credit quality, reliable cash flows, and less sensitivity to interest rates.
The fund targets a weighted average duration that is no less or no greater than 1.5 years of the Bloomberg U.S. Securitized Index’s duration. SECR’s main objectives are the delivery of both total return and current income, the prospectus notes.
SECR has an expense ratio of 0.40%. IndexIQ’s ETF lineup now includes six funds managed by MacKay Shields. The issuer offers a total of 22 ETFs, the largest of which is the $657 million IQ MacKay Municipal Intermediate ETF (MMIT).
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