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Lazard Asset Management Launches Three Fixed Income ETFs

In a significant move in the realm of asset management, Lazard Asset Management (LAM) has officially launched its first three actively managed fixed income exchange-traded funds (ETFs). These innovative offerings provide investors with unique avenues to access differentiated income opportunities. The new ETFs are:

• - Lazard US High Yield ETF (NYSE Arca HYB)
• - Lazard Hybrid Financial Income ETF (NYSE Arca HYFY)
• - Lazard Non-Dollar Active Income ETF (NYSE Arca XDLR)

The Rationale Behind the Launch

The decision to launch these ETFs stems from LAM's recognition of the evolving needs of investors amidst complex market conditions. Rob Forsyth, Global Head of ETFs at Lazard, emphasized the importance of fixed income as a fundamental component in many investment portfolios, noting that the current market presents a broader and more intricate opportunity set than in years past. He stated, "Investors are looking for income, diversification, and resilience, but they also need to be thoughtful about where that income comes from and the risks they are taking to earn it.”

Detailed Overview of the ETFs

1. Lazard US High Yield ETF (HYB)

The Lazard US High Yield ETF focuses on generating maximum total return through a combination of capital appreciation and current income from primarily below-investment-grade corporate bonds tied to the U.S. market. This fund evolved from the Lazard US High Yield Portfolio, which was launched in 1995, retaining its solid performance history. Portfolio manager Gordon McKemie noted, "HYB is built around our highest-conviction ideas, chosen one bond at a time." The fund aims for significant yields while maintaining a conservative risk profile by avoiding low-rated credits and emphasizing secured debt.

2. Lazard Hybrid Financial Income ETF (HYFY)

The Lazard Hybrid Financial Income ETF seeks total return by investing predominantly in hybrid securities issued by financial institutions, such as preferred and contingent convertible securities (CoCos). Portfolio manager François Lavier highlighted the advantages of hybrid securities, stating, "Investors can earn materially more by moving down the capital structure without sacrificing credit quality." This fund emphasizes issuer-level analysis and active security selection, focusing primarily on Europe and North America.

3. Lazard Non-Dollar Active Income ETF (XDLR)

The Lazard Non-Dollar Active Income ETF targets high current income while also aiming for capital appreciation. It invests in fixed income securities denominated in currencies other than the U.S. dollar, primarily focusing on emerging market local currency bonds. Portfolio Manager Alex Kozhemiakin described it as a proactive approach, stating, "XDLR is built for this moment, driven by currencies and local rates rather than solely credit risk.” This ETF is designed to provide investors a robust platform for navigating the uncertainties surrounding U.S. dollar assets in a rapidly evolving global market.

The Impact on Lazard's Offerings

With these launches, Lazard expands its actively managed ETF platform to a total of ten offerings in the U.S., amassing over $2 billion in assets since its introduction in April 2025. The company, founded in 1848, is globally recognized as a preeminent player in financial advisory and asset management, offering a wide array of investment solutions to institutions and high-net-worth individuals. As of September 30, 2026, Lazard managed approximately $284 billion in client assets.

Conclusion

Lazard's entry into the fixed income ETF market not only reflects the growing demand for specialized income strategies but also highlights the firm's ability to leverage its vast expertise in bond markets. As the landscape evolves, investors can look forward to innovative products that cater to their diverse income needs while navigating associated risks in these shifting economic times.