This is an actively managed bond ETF that does not track a specific index. It allocates most of its assets to securitized debt and derivatives with similar economic characteristics. Its main investments are mortgage-backed securities, asset-backed securities, and collateralized loan obligations.

It suits investors who want higher current income than deposits or Treasuries offer and can accept the credit and liquidity risks that are characteristic of structured debt.

The ETF is managed by Guggenheim Investments using an active management approach.

This is an active strategy that allocates most of its assets across the securitized debt market. It holds both investment-grade and below-investment-grade securities with a wide range of maturities, and the managers adjust the weighting of each asset class to market conditions. Because it is a non-diversified fund that is not bound by diversification requirements, exposure to specific sectors can grow large.

• Securitized debt selected at the managers' discretion rather than by tracking an index
• A single product that covers mortgage-backed, asset-backed, and collateralized loan securities
• Flexible allocation across investment-grade and below-investment-grade debt and a variety of maturities

Assets under management (AUM) stand at $94.7M, and the total expense ratio is 0.47% per year.

Securitized debt tends to have wider bid-ask spreads than Treasuries or high-quality corporate bonds, so it is worth looking at trading costs and the liquidity of the underlying assets as well as the results of active management. The fee is also higher than that of passive bond ETFs.

The fund's short listing history makes it too early to judge a long-term return trend. Securitized debt is an asset class that responds to both the direction of policy rates and changes in credit spreads, so the contributions of price and income vary depending on the rate environment.

Demand for income alternatives beyond deposit rates is flowing toward structured debt products. However, this is a new fund whose size is still small, so investors should keep in mind that bid-ask spreads can widen with fund inflows and outflows.

Its strength is that active management gives access to securitized debt, an asset class that is hard to reach directly, while its weaknesses are a short track record, credit risk, and a relatively high fee.

Listed products worth considering alongside it within the securitized debt asset class include passive bond ETFs such as MBB and VMBS, which track indexes of US mortgage-backed securities, and JAAA, which concentrates on the top tranches of collateralized loan obligations. Unlike these, this ETF is actively managed and moves broadly across asset classes, so its character is different, and because it is newly listed, performance data for a direct comparison is still limited.

These are the points to review before investing in this ETF. Although it is a bond product aimed at income, it is best to understand in advance its active management, credit risk, and short track record.

Securitized debt is exposed to both interest rate changes and widening credit spreads. In an economic slowdown, repayment defaults on the underlying assets can feed directly into prices, and because the fund is newly listed, it has no record yet of how it handles periods of market stress.

This is an actively managed bond ETF that may be worth considering as a satellite holding for income purposes. If the predictability of index tracking is the priority, consider a passive mortgage bond ETF. If you want the managers' broad, discretionary allocation, consider this ETF.