Active Income ETF Launches on Xetra by HANetf
The European ETF provider HANetf has announced the launch of a new ETF, the Infrastructure Capital Preferred Income UCITS ETF, on Germany's Deutsche Borse Xetra. This active ETF, managed in partnership with Capital One, is designed to exploit pricing inefficiencies created by interest rate moves, credit risk, and market dislocations.
Hector McNeil, co-founder and co-CEO of HANetf, expressed delight about the partnership with Capital One. He believes that this collaboration will bring a unique and opportune investment opportunity for global investors, particularly during a period of falling interest rates.
The Infrastructure Capital Preferred Income UCITS ETF is an active ETF that aims to generate a high level of current income through a diversified mix of income-producing securities. It is focused mainly on US preferred stocks. The manager of the ETF blends quantitative screening with hands-on security selection, focusing on securities believed to be undervalued.
Jay Hatfield, CEO and CIO at Capital One, expressed excitement about bringing their preferred income strategy to global markets. The ETF aims to provide investors with access to a wider set of high-yield opportunities than they would typically find in passive income funds. It also aims to manage downside risk while capturing attractive yield opportunities.
The ETF will pay a managed monthly distribution, allowing investors to generate regular income that can be reinvested or reallocated. It will be listed on the London Stock Exchange and Borsa Italiana in due course.
The active space in Europe is growing rapidly and showing no signs of slowing down. HANetf has received an increasing volume of enquiries from asset managers about launching active strategies. The provider looks forward to growing their active range with both new and existing partners.
The launch of the Infrastructure Capital Preferred Income UCITS ETF marks the 14th active ETF on the HANetf platform. This underscores the provider's commitment to offering innovative and diverse investment solutions to its clients.
In conclusion, the Infrastructure Capital Preferred Income UCITS ETF offers a compelling alternative to traditional passive income strategies, providing investors with an opportunity to capitalise on active management in the income space. The ETF, managed by Capital One, a boutique financial firm, is set to be listed on major European exchanges soon.
