Cincinnatti-based Touchstone Investments, known for its Distinctively Active mutual funds, has announced the launch of its first of four new actively managed ETFs, trading on the New York Stock Exchange Arca and Cboe BZA.
The firm writes that the ETFs mark the natural expansion of Touchstone’s Distinctively Active investment philosophy through an ETF structure, providing shareholders with more investment options.
Each of the four ETFs has a corresponding Touchstone mutual fund that shares a similar core investment strategy. The inception date for the first of the ETFs, Touchstone Strategic Income Opportunities ETF, was July 21, 2022, with the others to follow in the weeks ahead.
· Touchstone Strategic Income Opportunities ETF (SIO: NYSE Arca) — The expanded opportunity set of thismulti-sector bond strategy provides the flexibility to invest effectively in a variety of different markets and is focused on providing a high and consistent level of income and total return. (Inception: July 21, 2022)
· Touchstone US Large Cap Focused ETF (LCF: Cboe BZX) — This Fund seeks capital appreciation by investing in U.S.-listed equity securities that have a market capitalization at the time of purchase above USD5 billion and focuses on investing in companies with reasonable valuations combined with distinctive barriers to entry in their respective markets. (Inception: July 27, 2022)
· Touchstone Dividend Select ETF (DVND: NYSE Arca) — This Fund seeks a high level of current income and capital appreciation by investing primarily in a portfolio of dividend-paying, large-capitalisation equities which have the potential to support reliable, growing dividends along with reasonable valuations. (Inception: August 2, 2022)
· Touchstone Ultra Short Income ETF (TUSI: Cboe BZX) — This Fund seeks maximum total return consistent with the preservation of capital by primarily investing in a diversified portfolio of investment grade fixed income securities; its portfolio is managed to maintain an effective duration of one year or less under normal market conditions. (Inception: August 4, 2022)
“Distinctively Active management has long been the hallmark of Touchstone’s investment philosophy, and we are excited to extend that to investors through our ETF offerings,” says Blake Moore, president and chief executive officer of Touchstone Investments. “ETFs have grown in popularity among investors in recent years, so extending our Distinctively Active approach into ETFs is a natural expansion of our core competencies.”
The firm writes that its ETFs have the potential to provide excess returns and complement most investment portfolios; seek to reduce unintended risks and offer the flexibility to capture upside potential and limit downside risk relative to an index; and provide the potential for a more tax-efficient, cost competitive and transparent way to access Touchstone investment strategies with no investment minimum.
Touchstone’s commitment to being Distinctively Active means executing a fully integrated and rigorous process for identifying and collaborating with best-in-class asset managers to sub-advise the firm’s funds, the firm says. The four new Touchstone ETFs will be sub-advised by Fort Washington Investment Advisors, a long-time sub-adviser of the Touchstone Funds.
“We are excited to continue our relationship with Touchstone through the launch of four ETFs,” says Maribeth S. Rahe, president and chief executive officer of Fort Washington. “We believe specialisation is required in increasingly complex markets, and we look forward to employing uncompromised focus with Touchstone to bring these investments forward.”