The team at a 2,500-person, $642-billion-AUM (as of June 30) asset manager's $210-billion-AUM fixed income arm is adding a pair of high yield funds to their taxable fixed income suite of offerings. The dual launch boosts the firm's ETF lineup (including both active and index funds) to 14 ETFs in total.

On Thursday (September 12), Dan DeYoung, senior portfolio manager for high yield fixed income at Ameriprise's Columbia Threadneedle [profile], and Marc Zeitoun, head of North America product and business intelligence, unveiled the recent launches of the Columbia Short Duraton High Yield ETF (HYSD on the NYSE Arca) and the Columbia U.S. High Yield ETF (NJNK). Columbia Management Investment Advisers, LLC serves as investment advisor to the two actively managed ETFs, and their inception date was September 5.

HYSD comes with an expense ratio of 44 basis points, while NJNK's expense ratio is 46bps. NJNL is rules-based, while HYSD is actively managed. Both are series of Columbia ETF Trust I.

Senior PMs Brett Kaufman and Kris Keller will power HYSD. DeYoung and David Janssen, a PM, will serve as the PM team for NJNK.

DeYoung puts the launch of NJNK and HYSD in the context of high yield bonds having "an important role to play in a diversified portfolio."

"With potential cuts to the federal funds rate on the horizon, the benefits of thoughtful exposure to high yield are compelling," DeYoung states.
Zeitoun highlights the Columbia Threadneedle's team's "decades of experience in fundamental research, bottom-up credit selection and risk management."

"With NJNK and HYSD, we expect to provide clients with investment solutions that offer greater potential for alpha relative to indexed benchmarks, in a wrapper that emphasizes tax efficiency and low cost," Zeitoun states. "These important additions to our ETF range reflect our commitment to offering investors greater choice in how they access our investment strategies."

HYSD and NJNK's other service providers include: SS&C's Alps Distributors, Inc. as distributor; BNY Mellon Corporation as administrator, custodian, dividend disbursing agent, fund accountant, and transfer agent; and PricewaterhouseCoopers LLP as independent accounting firm. 

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