MutualFundWire.com: 3 Years In, a Startup Adds 3 Corporate Bond ETFs

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Monday, January 29, 2024

3 Years In, a Startup Adds 3 Corporate Bond ETFs

The team at a three-year-old startup fund firm near San Francisco is expanding their reach, this time into the corporate bond fund space.

Leland Carroll Clemons
BondBloxx Investment Management Corporation
Founder

Last Thursday, Tony Kelly, co-founder of BondBloxx Investment Management Corporation (BIM) [profile], and JoAnne Bianco, investment strategist, unveiled the launch of the Larkspur, California-based asset manager's first three corporate bond funds: the BondBloxx BBB Rated 1-5 Year Corporate Bond ETF (BBBS on the NYSE Arca), the BondBloxx BBB Rated 5-10 Year Corporate Bond ETF (BBBI), and the BondBloxx BBB Rated 10+ Year Corporate Bond ETF (BBBL). All three new funds are series of the BondBloxx ETF Trust, and the tripl launch expands BondBloxx's lineup to 23 ETFs in total.

The inception date of BBBI, BBBL, and BBBS was January 25, and each fund comes with an expense ratio of 19 basis points. As of the end of the day on January 26, the new ETFs had about $2.5 million each in AUM.

BIM serves as investment advisor to BBBS, BBBL, and BBBI, and Bloomberg Index Services Limited serves as the new funds' index provider. Elya Schwartzman, head of portfolio management and co-founder at BIM, serves as the new ETFs' PM.

BBBI is designed to track the Bloomberg US Corporate BBB 5-10 Year Index. BBBL is designed to track the Bloomberg US Corporate 10+ Year Index. And BBBS is designed to track the Bloomberg US Corporate BBB 1-5 Year Index.

"Investors who own broad investment grade ETFs in different maturity categories can now use these new BondBloxx ETFs to target BBB-rated bonds and benefit from the higher coupon of this compelling segment within the investment grade corporate bond market," Kelly states, highlighting BBB-rated corporate bonds' historical outperformance when compared with "the broad investment grade corporate bond universe."

"Investment grade corporates continue to be an area of focus for investors, and within that universe BBBs offer a unique opportunity for potential outperformance," Bianco states.

The new ETFs' other service providers include: Brown Brothers Harriman & Co. (BBH) as administrator, custodian, dividend disbursing agent, and transfer agent; Cohen & Company, Ltd. as independent accounting firm; Foreside Fund Services LLC as distributor; and Ropes & Gray LLP as counsel.

Printed from: MFWire.com/story.asp?s=66978

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