Robeco expands Fixed Income ETF range

The strategies combine Robeco’s long-standing leadership in quantitative and fixed income investing with the transparency, liquidity, and cost efficiency of an ETF structure.

The two Dynamic High Yield UCITS ETFs use a broad set of market indicators, including spreads, volatility, macroeconomic data and momentum to form an evidence-based view on high yield credit risk. The ETFs actively adjust high yield beta exposure using highly liquid CDS indices. This allows the strategy to adjust its risk profile quickly, taking additional exposure when market conditions are expected to be favorable while reducing exposure during periods of stress. The result is a high yield allocation designed to be flexible, forward-looking and responsive to changing markets.

The 3D Enhanced Index Credits ETFs are designed as smarter alternatives to passive credit investing, aiming to modestly enhance returns while staying closely aligned with their benchmarks. The strategy is built around three pillars:

• Return: Systematically seeks to improve risk-adjusted performance by harvesting well researched credit factor premiums, including value, momentum, quality and low risk.

• Risk: Maintains a core credit profile with tight tracking-error control, diversified factor exposures, and robust portfolio construction.

• Sustainability: Integrates selected sustainability objectives and metrics directly into the process, balancing them alongside financial goals rather than treating them as a trade off.

Both strategies are founded on the same quantitative investment process that Robeco applies across its existing active and factor-based credit strategies, now delivered in an efficient ETF structure. By combining disciplined models with fundamental credit insight, Robeco aims to offer fixed income ETFs that do more than simply track the market, seeking to deliver attractive outcomes for investors across the credit cycle.

Nick King, Head of ETFs at Robeco: “We are expanding our range of research-led active ETFs to provide efficient access to investment grade and high yield bond markets, seeking to enhance returns by utilizing proven investment capabilities. The new products complement our existing range of equity and government bond ETFs.”