Introducing Advisors Asset Management's New AAM SLC Low Duration Income ETF for Investors

Advisors Asset Management Expands ETF Offerings with New Launch

Advisors Asset Management (AAM), a prominent player in the investment solutions sector, has unveiled its latest exchange-traded fund (ETF), the AAM SLC Low Duration Income ETF (NYSE: LODI). This marks AAM's fourth ETF introduction of the year and signifies a strategic expansion of its ETF portfolio. The new fund is sub-advised by SLC Fixed Income, part of SLC Management, renowned for its extensive expertise in the fixed income investment arena.

The AAM SLC Low Duration Income ETF employs an active management strategy, focusing on a 100% bottom-up selection process. This approach ensures that each investment is carefully chosen based on its potential for providing substantial returns. The ETF tactically manages sector rotations to create a robust portfolio of high-conviction, investment-grade corporate, and securitized assets. Its goal is to outperform the Bloomberg U.S. 1-3 Year Government/Credit Index while delivering a superior income level to its investors.

Cliff Corso, President and Chief Investment Officer of AAM, emphasized the firm’s dedication to enhancing its ETF offerings, stating, "We are proud to deepen our commitment to opportunities within the ETF space by launching LODI, in partnership with an exceptional manager in SLC Management. This strategic move comes at a time when the market is characterized by fluctuating interest rates and a rising demand for diversified income solutions. LODI is positioned to help investors navigate these uncertainties while aiming for long-term stability and returns."

A significant feature of LODI is its design to mitigate fixed income portfolio volatility through duration reduction. By strategically varying the duration and credit risk, the ETF aims to enhance income generation while distancing itself from money market equivalents. This balancing act allows investors to engage with a product that is both income-generating and risk-conscious.

Richard Familetti, Chief Investment Officer for U.S. Total Return Fixed Income at SLC Management, shared insights into their strategy, stating, "We believe that short-duration credit and securitized opportunities present compelling advantages to investors, offering attractive yields with reduced sensitivity to volatility in interest rates. Managing duration risk is a key aspect of our investment strategy, and the LODI ETF provides a distinctive blend of income generation and risk mitigation. It’s an essential addition to a well-diversified portfolio."

AAM boasts 45 years of experience, having been a reliable resource for financial advisors and broker/dealers. The firm provides access to a wide range of investment products, including alternative investments, ETFs, and fixed income markets, managed accounts, and structured products. AAM is also part of SLC Management, which focuses on institutional alternatives and traditional asset management products. For the year ended September 30, 2024, AAM supported over $35 billion in sales and investments, demonstrating its influential presence in the financial advisory landscape.

Investors should understand the risks involved, as investing in fixed-income securities carries certain risks such as credit risk, interest-rate risk, and market liquidity issues. Particularly in rising interest rate environments, bond prices may decline, leading to potential losses. The fund's investment objectives, risks, charges, and expenses must be carefully evaluated before making investment decisions. Prospective investors can access critical information through the statutory and summary prospectus available from AAM.

For those interested in exploring AAM's ETF offerings further or learning more about the newly launched LODI fund, visit their official website at www.aamlive.com.

Conclusion

The launch of the AAM SLC Low Duration Income ETF represents AAM's commitment to delivering innovative solutions in the investments domain, offering both seasoned and new investors an opportunity to navigate the complexities of today's financial environment. With expert management and a strategic focus on income generation and risk mitigation, LODI stands as a promising option in the ever-evolving ETF landscape.