VanEck has announced the launch of the VanEck Dynamic High Income ETF (NYSE: INC), an actively managed multi-asset income-focused ETF offering diversified exposure across the highest yielding segments of the equity income and fixed income markets.
INC seeks to identify compelling sources of high income and dividends and builds a corresponding portfolio primarily of ETFs. The Fund’s management team then seeks to maximise yield per unit of risk by assessing volatility and correlation data to optimise and refine specific exposures. The Fund is also designed to adapt quickly to changing market conditions and to be able to take advantage of pricing anomalies within the market.
The Fund’s equity income sleeve will include exposures to dividend-paying stocks, business development companies (BDCs), preferred securities, mortgage REITs and MLPs. The Fund’s fixed income sleeve will be made up of exposures to “fallen angel” high yield bonds, international and emerging market high yield bonds, emerging market local currency bonds and 10-20 year U.S. Treasuries.
The Fund’s lead portfolio manager is David Schassler, Portfolio Manager and Head of Quantitative Investment Solutions at VanEck. The firm writes that he brings nearly 20 years of direct experience to this role, and in the case of INC, will work alongside the firm’s fixed income and equity investment teams, as they navigate the current markets and identify key opportunities for attractive income generation.
“The search for yield can no longer be a static activity,” says Schassler. “Amidst rising rates, global volatility and increased economic uncertainty, an active approach that seeks income across a wide range of fixed income and equity exposures will be a powerful tool for investors and advisors. We are thrilled to be launching INC, an ETF that we believe offers a compelling, comprehensive, dynamic, risk-managed means of accessing and allocating among income generating assets.”
INC joins an asset allocation-focused VanEck ETF line-up that also includes the VanEck Inflation Allocation ETF (RAAX), VanEck Muni Allocation ETF (MAAX) and VanEck Long/Flat Trend ETF (LFEQ).
