Raymond James Investment Management has launched its highly anticipated entry into the world of ETFs, introducing three actively managed ETFs designed to provide investors with steady portfolio income. The launch marks the firm’s first step toward developing an enhanced ETF platform to complement its well-established portfolio of mutual funds, SMAs, and institutional offerings.
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The launch brings Eagle Asset Management’s income-oriented strategies into the ETF format for the first time. The firm explains that the product offerings were created with the fundamental needs of financial advisors in mind, following a “central advisor-first approach.”
Matt Johnson, product and marketing chief at Raymond James Investment Management, stated that the initial lineup marks the beginning of an expanding, customizable ETF platform that will grow in sync with the company’s other investment products. Johnson explained that investor and advisor interest in income solutions informed the construction of these funds.
Three Views On Income
The new ETFs address various aspects of income generation:
RJ Eagle GCM Dividend Select Income ETF (NYSE:RJDI) seeks to provide dividend income exceeding the S&P 500 and inflation. A combination of high-quality dividend-paying companies and higher-yielding bonds is employed to manage volatility and income potential. The net expense ratio for the fund is 0.55%.
RJ Eagle Municipal Income ETF (NYSE:RJMI) primarily targets tax-exempt income through investments in investment-grade municipal bonds. It can also utilize a smaller portion of high-yield munis to boost returns. The fund’s expense ratio is 0.45%.
RJ Eagle Vertical Income ETF (NYSE:RJVI) employs a multi-asset strategy, combining preferred and common stocks with investment-grade corporate bonds. This technique aims to provide income, along with long-term capital appreciation, by investing in a company’s capital structure. RJVI also has an expense ratio of 0.55%.
Establishing An Active ETF Presence
Raymond James’ entry into ETFs is a sign of the growing interest in actively managed funds, a category that continues to attract investors seeking greater flexibility and transparency than mutual funds.
While the company has long provided income-focused products through other of its platforms, its move into ETFs represents a commitment to addressing investors where they increasingly reside, in the exchange-traded universe. The launch could also set the stage for eventual Raymond James ETFs focusing on specific income niches or asset classes.
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