Grail Advisors and Western Asset Management have teamed up on a new actively-managed exchange-traded fund. Grail filed registration today for the Grail Western Asset Enhanced Liquidity ETF.

Grail prides itself as being an expert in actively-manager ETFs. The fund will employ a short-term fixed income strategy from Western Asset, part of Legg Mason, which currently manages $478 billion in assets. Earlier this year Grail partnered with Chicago-based McDonnell Investment Management for two active bond ETFs.

The fund has a very low expense ratio of 30 basis points, priced five basis points below the 35 bps of the new Pimco Enhanced Short Maturity Fund.

The active bond ETF market is getting crowded. Aside form Pimco and Grail, Claymore and Eaton Vance (and at one point Bear Sterns) all use the strategies in their fund families.

Kenneth Leech, Stephen Walsh, Martin Hanley and Kevin Kennedy are the fund's portfolio managers. The fund is distributed by ALPS Distributors. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE