The team at a $1.3-billion-AUM, 13-year-old asset manager in Texas is rolling out their first ETF, less than four years after launching their first mutual fund.

Skyler R. Weinand Regan Capital, LLC Managing Partner

On February 28, Skyler Weinand, chief investment officer and managing member of Regan Capital, LLC [profile], unveiled the launch of the Regan Floating Rate MBS ETF (MBSF on the NYSE Arca). The actively managed fund is a series of Valued Advisers Trust.

MBSF's inception date was February 27, and it comes with an expense ratio of 49 basis points. The Regan team revealed that MBSF debuted with about $25 million in seed capital from select investors, and as of yesterday the ETF had $30.172 million in AUM.

Dallas-based Regan Capital serves as investment advisor to MBSF. The PM team includes: Chris Hall, senior portfolio manager; and Weinand himself, owner and founder of the firm. The fund is designed to invest in floating rate residential mortgage-backed securities (RMBS), primarily agency RMBS.

Weinand describes agency RMBS as offering investors "the best of both worlds: the potential to earn a higher yield than a traditional Treasury bond, while also seeking to benefit from the U.S. government's ironclad financial backing." He adds that agency RMBS can be "an attractive alternative for investors who park cash in money market funds, which won't yield as much as if the Federal Reserve cuts interest rates."

"Right now, there aren't many alternatives to money markets for investors looking for a place to keep cash," Weinand states. "We aim to democratize access to Residential Mortgage-Backed Securities for all investors with the ETF wrapper, which also provides liquidity and low fees for investors."

MBSF's other service providers include: Brown Brothers Harriman as custodian and transfer agent; Cohen & Company, Ltd. as independent accounting firm; Northern Lights Distributors, LLC as distributor; Troutman, Pepper, Hamilton, Sanders LLP as counsel; and Ultimus Fund Solutions, LLC (parent of Northern Lights) as administrator and fund accountant. 

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