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Investment Products and Service Launches

Wisdom Tree Unveils Fixed Income Strategy; Fidelity Launches ESG Index Funds; and Envestnet Offering 3(38) Investment Service to TIAA Clients.

By Javier Simon editors@strategic-i.com | May 18, 2017
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Wisdom Tree Unveils Fixed Income Strategy

WisdomTree has released its Barclays Yield Enhanced U.S. Short-Term Aggregate Bond Fund (SHAG). The fund seeks to enhance yield by sourcing and reweighting subcomponents within the short end of the U.S. Aggregate fixed income universe, while maintaining similar risk characteristics. It has a net expense ratio of 0.12%. The firm notes that SHAG over-weights credit securities and under-weights treasuries.

“In a market environment where every basis point counts, over-weighting treasuries might not be your first stop on the road to income,” says Kevin Flanagan, senior fixed income strategist at WisdomTree. “SHAG may serve as a powerful tool for investors seeking to navigate a potential rising rate environment.”

In a statement, Wisdom Tree noted: “With another potential rate hike a few weeks away, SHAG offers a solution for investors who wish to shorten the duration of their fixed income portfolio—particularly if they are concerned about rising rates—while still focusing on income.”  

NEXT: Fidelity Launches ESG Index Funds