This is an actively managed ETF that uses the Bloomberg U.S. Aggregate Bond Index as its benchmark and diversifies across intermediate-term investment-grade Treasury, corporate, and mortgage bonds. It concentrates on bonds with an average remaining maturity of 3 to 10 years, seeking higher interest income than short-term bonds.

It suits long-term investors building a core bond allocation who prefer the potential for excess returns from active management over a passive approach.

Victory Capital launched the ETF in 2017, and it follows an active management approach.

Based on credit analysis and interest rate outlooks, the management team selects intermediate-term investment-grade bonds, including Treasuries, investment-grade corporate bonds, and mortgage-backed securities (MBS). It maintains an average remaining maturity of 3 to 10 years and spreads investments across more than 1,000 holdings to reduce single-issuer concentration risk.

• Active management allows flexible duration adjustments according to interest rate and credit conditions
• Diversification across more than 1,000 holdings helps mitigate credit risk from individual bonds

Assets under management (AUM) stand at $2.6B, and the expense ratio is 0.25% per year.

Compared with passive ETFs in the same intermediate-term bond category, such as BIV and GVI, its fees are somewhat higher, but the potential for excess returns through active management sets it apart.

During periods of interest rate volatility, the fund has maintained defensive performance relative to its benchmark through duration management and credit allocation, and in stable-rate phases the downward pressure on yields has eased.

As interest rate uncertainty has risen, steady inflows have continued into core bond assets, and AUM remains at a mid-range level within the intermediate-term bond category.

The flexibility of active management and broad diversification are its strengths, while higher fees than passive funds and the lack of any guarantee of excess returns are its drawbacks.

Similar ETFs in the same intermediate-term bond category include BIV, GVI, and IMTB, shown in the table, which are passive and tend to carry lower fees. As an actively managed intermediate-term bond alternative, you can also consider BOND, managed by PIMCO. If you are interested in responding to interest rate swings, BSV, which focuses on short-term bonds, is worth a look, and if you want inflation-linked exposure, you can refer to TIP.

Here are the key points to review before investing in UITB. As an active bond ETF, it is important to check in advance its management costs, interest rate sensitivity, and the consistency of its management performance.

During periods of rising interest rates, the fund's intermediate duration may expose it to downward pressure on bond prices. Because active management does not always guarantee excess returns, you should check the consistency of its performance regularly.

It suits investors who want to hold US investment-grade intermediate-term bonds as a core asset while retaining the flexibility of active management. If cutting fees is a priority, consider passive alternatives such as BIV and GVI as well.