LOS ANGELES--(BUSINESS WIRE)--Mar 10, 2025--
The TCW Group, Inc., a leading global asset manager, today announced that its recently-launched fixed income ETF platform now manages in excess of $1.2 billion in assets. TCW is known in the industry for excellence in both the public and private segments of fixed income, and now offers six actively managed fixed income ETFs to deliver its expertise to a wider range of investors.
TCW entered the ETF business in late 2023 with the acquisition of Engine No. 1’s ETF business which comprised three equity ETFs as well as the capabilities and infrastructure to develop and manage ETFs across asset classes. TCW has rapidly become a leading provider of active ETFs with $2.6B in total assets across equities and fixed income.
“At TCW, we have strong conviction in active management for long-term fixed income and are seeing growing demand for active fixed income ETFs from investors ranging from insurers to corporates as well as all segments of the wealth market to meet portfolio allocation targets, manage risk and deliver yield,” said Jennifer Grancio, TCW Head of ETFs and Global Head of Distribution. “We have developed a lineup of fixed income ETFs designed for both return and high-quality income generation grounded in TCW’s decades of fixed income expertise.”
TCW launched its actively managed fixed income ETF business in mid-2024 with the TCW Flexible Income ETF (FLXR), which was a conversion from a longstanding TCW mutual fund. FLXR is a multi-sector bond fund with strong performance and yield that can work as a core total-return holding that generates income. FLXR holds a four-star rating from Morningstar 1 and is priced competitively at 40 basis points. As of February 28, 2024, FLXR’s 12-month yield is 6.20% and its 30-day SEC yield is 5.79% 1. FLXR’s assets have more than doubled since launch.
In addition to FLXR, the firm manages the TCW AAA CLO ETF (ACLO), TCW Corporate Bond ETF (IGCB), TCW High Yield Bond ETF (HYBX), TCW Multisector Credit Income ETF (MUSE), and TCW Senior Loan ETF (SLNZ). TCW’s offering is designed to provide investors access to the range of sectors within fixed income.
“We expect to see explosive growth in fixed income ETFs over the coming years, and TCW is well-positioned to significantly build our franchise and launch exciting new products to address investor needs,” continued Grancio.
About The TCW Group
TCW is a leading global asset management firm with a broad range of products across fixed income, alternative investments, equities, and emerging markets with over half a century of investment experience. Through its ETF suite, TCW MetWest Funds and TCW Funds, TCW manages one of the largest fund complexes in the U.S. TCW’s clients include many of the world’s largest corporate and public pension plans, financial institutions, endowments and foundations, as well as financial advisors and high net worth individuals. For more information, please visit www.tcw.com.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
MORNINGSTAR DISCLOSURE
The Morningstar Rating TM for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
The total number of Multisector Bond funds that the Fund was rated against for the 3- and 5-year time periods were 330 and 282 respectively. The TCW Flexible Income ETF (FLRX) received a rating of 3-stars and 4-stars for the 3- and 5-year periods respectively. ©2025 Morningstar, Inc. All Rights Reserved. The information contained herein is proprietary to Morningstar, may not be copied or distributed, and is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. The Fund’s expense ratio is 0.40%.
Basis Point (BPS) – One hundredth of one percent, used chiefly in expressing differences of interest rates.
Before investing you should carefully consider the fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained from etf.tcw.com. Please read the prospectus carefully before you invest.
INVESTMENT RISKS
TCW Flexible Income ETF (FLXR) seeks a high level of current income with a secondary objective of long-term capital appreciation. The Fund is an actively managed exchange traded fund that seeks to pursue its objective by utilizing a flexible investment approach that allocates investments across a range of global investment opportunities related to credit, currencies and interest rates. TCW Flexible Income ETF (FLXR) is subject to the following risks: High yield securities may be subject to greater fluctuations in value and risk of loss of income and principal than higher-rated securities. It is important to note that the Fund is not guaranteed by the U.S. Government. Fixed income investments entail interest rate risk, the risk of issuer default, issuer credit risk, and price volatility risk. Funds investing in bonds can lose their value as interest rates rise and an investor can lose principal. The Fund’s investments denominated in foreign currencies will decline in value if the foreign currency declines in value relative to the U.S. dollar. Fund share prices and returns will fluctuate with market conditions, currencies, and the economic and political climates where the investments are made. The securities markets of emerging market countries can be extremely volatile. Mortgage-backed and other asset-backed securities often involve risks that are different from or more acute than risks associated with other types of debt instruments. MBS related to floating rate loans may exhibit greater price volatility than a fixed rate obligation of similar credit quality. With respect to non-agency MBS, there are no direct or indirect government or agency guarantees of payments in pools created by non-governmental issuers. Non-agency MBS are also not subject to the same underwriting requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a government or government-sponsored entity guarantee. The Funds are considered to be non-diversified, which means that each may invest more of its assets in, and be more exposed to the risks of, the securities of a single issuer or a smaller number of issuers, which may increase each Fund’s volatility. Liquidity Risk. Lack of a ready market or restrictions on resale may limit the ability of the Fund to sell a security at an advantageous time or price. The liquidity of the Fund’s assets may change over time. Derivatives Risk. A derivative is a financial contract, the value of which depends on or is derived from, the value of an underlying asset such as a security or an index . Please see the Fund’s Prospectus for more information on these and other risks.
The Funds are advised by TCW Investment Management Company LLC. Distributed by Foreside Financial Services, LLC.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE | © 2025 TCW Group. All rights reserved.
1 Rating based on risk-adjusted returns among 330 funds in the Multisector Bond category, as of 1/31/2025. The overall Morningstar Rating for a Fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. |
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2 The Fund’s prospectus can be found here. Current yield is annual income (interest or dividends) divided by the current price of the security. The 30-day SEC yield is the average annualized net investment income per share for the 30-day period ended on the last day of the month. Standard performance may be found here. |
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