An actively managed multi-sector bond ETF that does not track a specific index, flexibly adjusting exposure across global bond sectors — including investment-grade, high-yield, securitized, and emerging-market bonds — based on market conditions.

It is well-suited for investors who want to enhance the yield of their fixed-income portfolio while preferring diversified bond exposure over concentration in a single sector.

The ETF was launched in 2018 by TCW and follows an active (discretionary) management approach.

� How does it invest?

To capture diverse opportunities across credit, rates, and currencies in the bond market, the fund dynamically allocates across global bond assets without sector restrictions. The management team adopts a discretionary approach, freely adjusting credit quality and sector weights in response to changing market conditions.

• Flexible allocation authority with no sector, credit-quality, or regional limits
• Research capabilities of TCW, a fixed-income specialist manager

Size and Cost

Assets under management (AUM) stand at $3.6B, and the total expense ratio is 0.40% annually.

The fee is somewhat higher than passive index-tracking bond ETFs, but the differentiating factors are the flexibility to respond to changing market conditions and the ability to pursue current income.

Even in environments with high interest-rate volatility, the fund's multi-sector approach has delivered stable returns through flexible allocation across sectors, with adjustments to high-yield and securitized bond weights contributing to performance.

Rising demand for fixed income amid a higher-rate environment has lifted investor interest in multi-sector actively managed bond ETFs, resulting in notable inflows and rapid AUM growth within its peer category.

The flexible multi-sector allocation allows the fund to respond to a wide range of market conditions, but investors should weigh the fee burden and credit risk associated with active management.

Alternative ETFs and Related Products

BNDX and IUSB, shown in the table, are passive bond ETFs with low fees that track indexes and serve as core bond holdings. BINC, PYLD, and JCPB are comparable ETFs that take a similar active multi-sector approach. Additional direct comparators in the multi-sector bond category include BOND, managed by PIMCO, as well as PFF, which carries heavier exposure to preferred and hybrid securities. The appropriate combination will depend on each investor's return objectives and risk preferences.

Key points to review before investing in FLXR. As an actively managed multi-sector bond ETF, flexibility is its strength, but credit and interest-rate risk along with the fee level should be verified in advance.

Credit risk from exposure to high-yield and securitized bonds, along with interest-rate volatility, are the primary risk factors. During periods of market stress, widening credit spreads could trigger short-term losses.

This is an actively managed ETF well-suited to investors pursuing both multi-sector bond exposure and current income. To minimize the fee burden, passive bond ETFs are an option; for those seeking flexible sector allocation, an active approach such as FLXR is worth considering.