Schroders has announced the launch of two new fixed income active ETFs, as it continues to expand its range across asset classes and geographies.
The firm writes that the Schroder CoCo Financial Credit Active UCITS ETF and Schroder USD Investment Grade Corporate Bond Active UCITS ETF will offer investors access to two distinct areas of global credit.
These come one year after Schroders launched its first fixed income UCITS Active ETF in September 2025, marking the next phase of the firm’s strategic build-out of its active fixed income capabilities within an ETF wrapper.
Schroder CoCo Financial Credit Active UCITS ETF
The Schroder CoCo Financial Credit Active UCITS ETF incorporates an actively managed strategy that invests at least two-thirds of its assets in contingent convertible (CoCo) bonds denominated in US dollars, euros or sterling and issued by global financial institutions.
The ETF, which will be managed by Cindy Wang, adopts a bottom-up approach to corporate bonds and utilises in-house credit research to identify relative opportunities across regions, financial sub-sectors and credit ratings. The ETF aims to provide income and capital growth in excess of the ICE BofAML Contingent Capital Index (Hedged to USD) after fees over a three-to-five-year period.
Schroder USD Investment Grade Corporate Bond Active UCITS ETF
The Schroder USD Investment Grade Corporate Bond Active UCITS ETF will invest at least two-thirds of its assets in US dollar-denominated fixed and floating rate securities issued by companies worldwide.
Managed by Julien Houdain, Head of Global Fixed Income, and portfolio managers Martin Coucke and Francois Carrie, its bottom-up investment strategy is designed to exploit structural pricing inefficiencies within corporate bond markets. The process combines quantitative analysis to estimate the relative value of thousands of bonds and is combined with a risk model that evaluates the risk characteristics of individual bonds rather than sector-wide groups. This is then supplemented by a portfolio optimisation, which seeks to construct a diversified portfolio and deliver consistent risk-adjusted returns efficiently and at scale.
The ETF aims to provide income and capital growth in excess of the Bloomberg US Corporate Total Return Index after fees over a three-to-five-year period.
Tom Stephens, Head of ETFs at Schroders, says: “One year on from the launch of our first fixed income active ETF, these additions mark the next stage of our strategic build-out across fixed income and reinforce our ambition to develop a broad active ETF platform across asset classes.
“Our focus is on bringing established investment capabilities into an ETF wrapper where they can meet clear client needs. The launch of our CoCo Financial Credit and USD Investment Grade Corporate Bond strategies strengthens our fixed income offering and gives clients greater choice in how they access Schroders’ active fixed income expertise.”
