Actively Managed ETFs
Pinpointing Opportunity, Managing Risk
Investors are faced with various unknowns in all market environments – from interest rate fluctuations, inflation, and geopolitical conflicts to market volatility. While we can’t be immune to all these challenges, arming oneself with a flexible, actively managed investment solution that can adapt to changing opportunities and risks can be a sensible starting point.
Innovative Active ETF Ideas
The growing interest in actively managed ETFs among investors shows their value to enhance your investment options. Natixis’ multi-affiliate active managers’ expertise takes it a step further, offering innovative strategies to help investors face shifting market environments.
| Active Fixed Income ETFs | ||
|---|---|---|
| Fund Name | Ticker | Morningstar Category |
| Natixis Loomis Sayles Short Duration ETF | LSST | Short-Term Bond |
| Loomis, Sayles & Company is one of the most renowned names in active fixed income. Their high-conviction approach looks for a yield advantage while actively managing risk under all types of market conditions, including amid rising interest rates. | ||
| Active Equity ETFs | ||
|---|---|---|
| Fund Name | Ticker | Morningstar Category |
| Natixis Vaughan Nelson Mid Cap ETF* | VNMC | Mid-Cap Blend |
| Natixis Vaughan Nelson Select ETF* | VNSE | Large Blend |
| Vaughan Nelson Investment Management believes information and liquidity gaps in the equity universe – across small, mid, and large cap – can create value opportunities. | ||
| Natixis U.S. Equity Opportunities ETF* | EQOP | Large Blend |
| This multi-manager solution is enhanced by two renowned portfolio management teams at Harris Associates and Loomis, Sayles & Co., bringing both value and growth equity styles together in a single product. | ||
* Semi-transparent ETFs are different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example: You may have to pay more money to trade the ETF’s shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information. The price you pay to buy ETF shares on an exchange may not match the value of the ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders. These additional risks may be even greater in bad or uncertain market conditions. The ETF will publish on its website each day a “Proxy Portfolio” designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF’s holdings, it is not the ETF’s actual portfolio. The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF’s performance. If other traders are able to copy or predict the ETF’s investment strategy, however, this may hurt the ETF’s performance. ETFs trading on the basis of a published “Proxy Portfolio" may trade at a wider bid/ask spread than ETFs that publish their portfolios on a daily basis, especially during periods of market disruption or volatility, and therefore, may cost investors more to trade. For additional information regarding the unique attributes and risks of these ETFs, see the fund's prospectus.
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Natixis Active ETF Approach
Combining renowned investment research and active investment managers with the benefits of an ETF solution:
• Cost-conscious
• Tax-efficient
• Intra-day trading
• Active fund manager insights
Read Our ETF Brochure
Educational ETF Insights
Learn about the potential benefits of actively managed ETFs.
- The ETF Strategist: What They Can Offer
- Assessing ETF Cost – Understanding the Bid/Ask Spread
- How to Evaluate ETFs
Recent ETF Insights
Explore our content to uncover the latest thinking on key issues shaping the ETF landscape, as well as more about our active investment approach from our lead strategists and investment managers.
Discover 3 questions to ask regarding short duration bond strategies and learn how this approach may alleviate rising interest rate concerns.
Increasing yields, widening spreads, limited interest rate risk, and the flexibility of active management – could point to compelling bond opportunities.
ETF.com, January 4, 2023
Nick Elward, head of institutional product and ETFs at Natixis Investment Managers, looks ahead to three exchange-traded fund trends that could emerge in 2023.
Why Actively Managed ETFs?
We already know that ETFs can provide superior liquidity, lower costs, and greater tax efficiency relative to some other investment vehicles. Actively managed ETFs can offer the added potential for enhanced risk-adjusted returns based on a skilled portfolio manager’s decision-making and investment process.
While active managers are, of course, challenged when navigating elevated market volatility, their investment insights are supported by proprietary research resources and a team of research analysts to opportunistically select investments with the most compelling risk/reward profiles. In fact, for portfolio managers whose strategies follow a long-term time horizon, short-term market volatility can also be viewed as an opportunity to buy stocks or bonds of quality companies at discounted prices.
RISKS: ETF General Risk: Exchange-Traded Funds (ETFs) trade like stocks, are subject to investment risk, and will fluctuate in market value. Unlike mutual funds, ETF shares are not individually redeemable directly with the Fund, and are bought and sold on the secondary market at market price, which may be higher or lower than the ETF's net asset value (NAV). Transactions in shares of ETFs will result in brokerage commissions, which will reduce returns. Active ETF: Unlike typical exchange-traded funds, there are no indexes that the Fund attempts to track or replicate. Thus, the ability of the Fund to achieve its objectives will depend on the effectiveness of the portfolio manager. There is no assurance that the investment process will consistently lead to successful investing. Equity Securities Risk: Equity securities are volatile and can decline significantly in response to broad market and economic conditions. Foreign Securities Risk: Foreign securities may involve heightened risk due to currency fluctuations. Additionally, they may be subject to greater political, economic, environmental, credit, and information risks. Foreign securities may be subject to higher volatility than US securities, due to varying degrees of regulation and limited liquidity. Currency Risk: Currency exchange rates between the US dollar and foreign currencies may cause the value of the fund's investments to decline. Small and Mid-Cap Stocks Risk: Investments in small and midsize companies can be more volatile than those of larger companies.
ALPS Distributors, Inc. is the distributor for the Natixis Loomis Sayles Short Duration Income ETF, the Natixis Vaughan Nelson Mid Cap ETF, the Natixis Vaughan Nelson Select ETF, and the Natixis US Equity Opportunities ETF. Natixis Distribution, LLC is a marketing agent. ALPS Distributors, Inc. is not affiliated with Natixis Distribution, LLC.
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