First Look ETF: High Conviction and Active Income ETFs

Hello everyone.

It is great to have you with us.

You are watching the December episode of First Look ETF.

I'm Stephanie Stanton with ETF Guide.

It is great to see you again.

We have a stacked guest lineup.

Coming up on today's program, we will examine a new pair of fixed income ETFs from Voya Investment Management that offer unique income solutions.

We will also explore active ETFs from Man Group and Gabelli Funds that target the bond market with a novel approach.

But first, before we go any further, let's welcome ML Leum with the New York Stock Exchange.

Mal, thank you so much for joining us. >> Well, it's great to be back on the show, Stephanie. >> And as always, we want to start with the latest update on ETF launch activity.

How are things looking? >> It's shaping up to be another record-breaking year for ETF launches, and we still have a few weeks to go.

November alone saw nearly 120 new ETFs come to market, bringing the year-to-day total to more than a,020, well ahead of last year's record pace.

As we head into December, the US market now counts over 4,750 ETFs.

It's not just about the numbers of products.

Investors demand remains strong.

For the second consecutive year, industry flows have topped over $1 trillion, pushing total US ETF assets to approximately 13.3 trillion.

You know, it's hard to believe that we are wrapping up the year. 2025 was a remarkable year for the ETF industry.

Beyond product innovation, it was also a year of many milestones.

What are some of the key moments or events in the ETF market that stood out to you and your team? >> 2025 was truly a milestone year for the ETF industry, and it didn't disappoint.

The long antic anticipated approval of the multissares proposal was a major development, making it easier and more efficient for traditional mutual fund managers to bring ETFs to market.

We also saw significant progress in digital assets.

Crypto ETFs continue to gain traction, especially following a key rule adoption this fall with strong inflows and new product products across multiple issuers.

Another standout moment was the introduction of private credit and the ETF rapper, giving investors access to an asset class that was once difficult to reach and further democratizing investment opportunities.

Active ETFs dominated launches, reflecting growing demand for more dynamic strategies.

Investors, both retail and institutional, embraced a more complex solution like define outcomes, option-based income, and leverage products, moving beyond traditional passive exposures to manage risk and seek enhanced return.

It's a year of innovation, expansion, and record-breaking growth. >> And with 2026 just ahead, what trends in the ETF marketplace will you be watching out for?

As we look ahead to 2026, one of the biggest trends we're watching is the first ETF launch utilizing the newly approved share class structure in the active space.

That could be a gamecher.

It will open up the door for more traditional mutual fund managers to enter the ETF market and accelerate the growth of active strategies.

We also expect ETF adoptions to keep climbing as we see the ETF rapper continues to prove its dominance as the preferred vehicle for innovation and investor access.

In short, 2026 is shaping up to be another year of expansion, innovation, adoption, and the evolution of the industry. >> You know, we have a great guest lineup.

What are you looking forward to most about today's show? >> I'm really looking forward to today's show because we have some of the newest ETF issuers joining us here at the NYC.

These firms are certainly not new to the industry.

They bring deep expertise, but they've recently expanded into ETFs, and that's exciting.

We'll be showcasing innovative investment solution and I can't wait to hear what Voya Gabelli and Mang Group have to share with us today. >> Thank you May Tall for the update.

Keep up the good work.

It is so great to see you and we'll see you soon. >> Thanks so much for having me. >> And just a quick reminder to watch First Look ETF on Apple TV, Amazon Fire TV, and Roku.

We also simoc cast First Look ETF on iTunes and Spotify.

So be sure to check us out there as well.

For many years, fixed income was viewed as a safe haven.

But today, inflation is eroding bond returns faster than coupon payments can keep up.

Is there anywhere in the bond market where investors can turn to?

Well, here to elaborate is Chris Wilson, CFA, head of product and strategy for Voya Investment Management.

Chris, thank you for being with us.

It's great to see you. >> Thank you so much for having me today.

So before we discuss Voya's fixed income ETFs, what are some of the challenges facing fixed income investors in today's environment? >> Well, Stephanie, you already alluded to one, but uh two of the big challenges that stand out to for fixed income investors today.

First, it's the Fed's next moves.

Uh while we're clearly in that rate cutting cycle, uh both the size and the speed of those rate cuts, they they remain uncertain and that uncertainty is bringing volatility to markets.

Uh second is clarity on the economy and inflation.

Uh investors are watching labor markets, consumer spending, and other inflation trends closely, but the recent government shutdown this past fall delayed key data releases, making it harder to get a clear read on the fundamentals.

And on that note, the Voya Ultrashort Income ETF and the ticker is VUSI, the Voya Core Bond ETF, your ticker there is VCO, and the Voya Multis sector income ETF, that ticker is VMSB.

Now, these are among your latest ETF edition.

So, congratulations on those.

Um, how might Voya's active management expertise benefit fixed income investors for each of these specific strategies? and please break down each one if you will. >> Absolutely.

Well, and and thank you very much for the congratulations.

We're truly excited about our debut uh in the ETF market.

At Voy Investment Management, our our goal is simple.

We want to meet clients where they want to invest and ETFs are now a critical part of that landscape.

Now, fixed income, that's a true center of excellence at Voya IM. um and our first set of ETFs that takes advantage of our broad public fixed income markets platform with three distinct fixed income risk profiles with those three ETFs and Voya's active management expertise.

Well, we seek to create value for investors through a combination of top- down asset allocation and bottom up security selection.

Uh so running through uh those three ETFs for the Voya ultrashort income ETF ticker VUSI that's designed for capital preservation and liquidity.

So that seeks to deliver stability with a conservative profile ideal for investors seeking short-term uh stability in short-term uncertainty.

Uh next, the Voya core bond ETF VCO.

Well, that's a core strategy with a ballast of highquality bonds enhanced by active positioning to adapt to changing market conditions.

And then lastly, the Voya multis sector income ETF uh VMSB that's built for income generation across a wide range of sectors and security types uh offering flexibility and diversification for investors seeking more yield and more income.

So then, how do you see advisers and investors potentially using these ETFs as part of their overall investment portfolios? >> We regard our new ETFs as foundational building blocks serving important roles in diversified portfolios.

I mean, for fixed income, it's going to be one of three objectives.

Stability, diversification, or income.

And as it relates to stability, if we start there, the ultrashort income ETF that targets yields higher than money market funds.

So this would be a suitable replacement for cash uh and cash equivalents and our ability in this ETF to invest in corporates and securitized assets.

It provides additional yield or extra income relative to government securities while maintaining low sensitivity to uh to interest rates. for diversification.

The Voya core bond ETF is a core solution uh with active management with an active management advantage in bonds.

Uh see in bond indices they're debt weighted.

So that means whatever issuer issues the most debt has the largest exposure uh in that index and that doesn't always lend itself uh to a winning uh a winning outcome.

And so the rules that are dictating these indices, they're creating inefficiencies uh and we're looking to take advantage of those.

So the Voya core bond ETF, it's capitalizing on those benchmark inefficiencies uh for smarter exposure u with an investment grade ballast that again offers that predictable d uh diversification when market volatility sways across capital markets.

And then lastly, income.

And the Voya multis sector income ETF, it's built for income and designed to deliver attractive yields across a market cycle.

So up to 65% in below investment grade securities and the fund targets that higher income, it's going to be higher than a core or core plus strategy.

And those below investment grade in uh securities, they'll be across a diversified uh grouping whether it's high yield corporates, securitized or even dollar denominated investments from select emerging market countries.

It really is the the ABCs of fixed income investing. >> And we are going to wrap it up right there.

Chris Wilson, thank you so much for joining us.

It is a pleasure to have you today on First Look ETF. >> Thank you, Stephanie. >> Well, one day the Fed is cutting, the next they're on hold.

Interest rate uncertainty has many bond investors on the edge of their seats.

So, how can investors stay disciplined?

Actively managed ETFs from Mangroup, which offer professional oversight, are one possible solution.

And here to tell us more is Shriram Reddi, head of client portfolio management discretionary with Mangroup.

Shiron, thank you so much for being with us. >> Hey, thanks for having me.

So before we dive into Mangroup's ETFs, can you familiarize our audience with Mang Group and your firm's unique investment history and philosophy? >> Of course.

Mangroup is a UK listed asset manager with around 213 billion in assets under management and believe it or not it was actually founded in 1783 and the firm has deep roots in systematic and fundamental strategies particularly in hedge funds.

Currently, we run around 50 billion in credit strategies across liquid credit, hedge funds, and private credit and are really excited to bring some of that to the active ETF market.

Philosophically, we are valuebased investors and are almost 100% bottom-up focused.

We tend to avoid headlines.

We focus on long-term fundamentals of companies with the aim of really under uncovering value across markets.

So, in a way, you can think of that we are skating to where the puck is going.

We're not looking where the market is uh evolving to.

So, we're regular rigorously focusing on delivering alpha, not just beta.

And we believe in uh the background of building a high conviction portfolio using some of the techniques we've used in our hedge fund strategies. >> And your firm recently launched its first actively managed exchange traded funds, ETFs, on the New York Stock Exchange.

So, a big congrats on that.

Um, these new funds joining your lineup are the MAN Active High Yield ETF, and your ticker there is MHY.

And then the man active income ETF.

Your ticker is mi.

Manny, please tell us more about the strategies behind these ETFs. >> Absolutely.

It's a very exciting time for us to start our active ETF project in the US.

You know, we've identified some of our most successful teams where we felt their investment pro process would fit an active ETF rapper very well and then we very simply launch them into the market.

So if I start with the man high yield ETF, this is an actively managed global high yield ETF and again it's 100% bottom-up focused.

We spend all of our trying time trying to ascertain the fundamental value of companies and try to see where this is mispriced in the market.

Once we do that, we build a very concentrated portfolio.

So we're going to buy a very small subset of the over 1500 issuers that you find within the global high yield space.

The second thing is that we're unconstrained by benchmark.

So we think that fixed income indices are a very strange beast.

They are constructed by market capitalization weights the same that equity indices are.

You know there's some rationale to wanting to own more of the MAG7 but you don't necessarily want to own more of a company just because it has more debt outstanding.

So again we don't use the benchmark as a way to construct a portfolio and we really just go where the best value is.

And then the final point is that we tend to focus on the underserved and underresarched parts of the market.

So this could be global.

So this could be opportunities outside the US and it could also be opportunities in small and medium-sized companies which are the largest subset from an issuer basis within the index but it tends to be a a smaller percent on a percent market value within the index.

So again looking for where the mispricing is greatest within the marketplace and then on the Manny fund our income fund this is our flexible income strategy and we're aiming to deliver value primarily through credit strategy selection.

We're not a macro fund.

We're not making big calls on duration.

We're not making calls on FX.

Again, we're trying to allocate across investment grade, high yield, emerging market debt as well as securitized credit to build a portfolio that's uh delivering attractive income.

We're a very valuedriven investor, 100% bottom-up focused.

And I think that's a very good complement to some of the existing strategies available in the marketplace, which tend to be much more top down.

Our focus is really on trying to deliver the find the pockets where alpha is available, not just trying to replicate an index, not just trying to replicate a market. >> And then before we let you go, how do you see financial adviserss and investors using your ETFs inside a diversified portfolio? >> Sure.

So for the first thing I would say is that you know these are very attractive income solutions, but again instead of being top- down macro allocations to specific parts of the market, it's very bottom up focused.

We're going to where the value is.

Particularly in a market like today where valuations are actually quite expensive in portions of credit markets, we're actually going where the valuations can be a little bit more attractive.

These are dynamic strategies.

They're not always just down in quality.

So, we're dynamically managed.

We can go to where the best opportunities are.

And we're never just going to target a static level of yield.

Sometimes they'll be attractive if if the market's cheap.

Sometimes they'll be a little bit lower if the market's very expensive.

They're also very unconstrained.

So we're going to hopefully deliver deliver better outcomes in both a good and a bad environment for credit.

And we do think that both of these strategies offer effective global diversification.

Many investors are are primarily focused on US fixed income but we think that there are plenty plenty of opportunities in Europe, Asia, Latin America and this fund will take both of these funds will take advantage of that. >> Remd thank you so much for joining us.

It has been a pleasure to have you. >> Thanks so much.

Fixed income markets are in flux and investors are trying to balance the need for yield with the need to protect principle.

Well, a new income ETF from Gabelli Funds aims to help investors navigate these uncertainties.

Let's welcome now Wayne Plunac, managing director and head of Gabelli Fixed Income.

Hello, Wayne.

It's good to have you. >> Hi Stephanie, thank you for having us today.

So before we discuss your latest ETF launch, can you familiarize our audience with Gabelli Funds and your firm's investment philosophy? >> Certainly, I'd be delighted to.

So Gabelli is a global asset management firm founded by Mario Gabelli back in 1977.

Today we manage over $ 35 billion in client assets across value, growth, fixed income, convertibles, and alternatives uh through open and closed end mutual funds, separately managed accounts, USITs, and ETFs.

Uh Gabelli is a research-driven investment firm with over 50 investment professionals covering overlooked and undercovered companies across all industry sectors and dare I say market capitalizations.

Um this research platform uh supports our equity and fixed income strategies giving us a unique view of every company we invest in. >> So then the Gabelli highinccome ETF and your ticker GBHI marks another key step in growing Gabelli's ETF suite.

It also expands investors access to Gabelli's income solutions.

Can you tell us more about GBHI's strategy and maybe some of the holdings?

The Gabali High Income Fund uh I should say ETF ticker GBHI is an actively managed highinccome ETF focused on the upper tier of the high yield space primarily doubleB and strong single B- rated names.

Um the idea is simple um bond inves bond investors are basically glorified lenders.

We're going trying to capture you know attractive income while keeping a disciplined eye on potential downside risks.

And you could think of it as taking the very fine research that done across our entire platform and going and just moving up in the capital structure.

And so a number of the names are are should be familiar to all of our investors and anyone who's familiar with the Gabelli organization as a whole.

We build bond portfolios one bond at a time uh selecting issuers that we've known uh across both the equity and credit markets for years.

Um, all the ideas come from our industry experts and our dedicated credit team.

Um, as an example, uh, one name that's currently in the portfolio that we're buying today because there's a new issue, uh, but we've had it in the portfolio already is Herk, uh, Rentals.

U, it's a name that we covered from, uh, its spin-off years ago.

I think our our firm probably has a basis in the stock at like $30 a share.

Uh, it went up to 200ish.

It's retrenched a bit.

It's now trading about 130 today.

Um, but that would be one of the kinds of names that you'd see.

So, a name that would be a traditional Gabelli name, but once again moving up in the capital structure, trying to go and expand and uh avail ourselves of the very fine work that our analyst team is doing across the platform. >> And with that being said, how do you see advisers and investors potentially using GBHI inside a diversified investment portfolio?

They could use Giblly High Income as a potential income anchor for investors looking to enhance yield without taking on excessive credit risk.

Um, today's public high yield markets offer competitive income, strong fundamentals, um, dare I say improved credit quality mix, low default rates, generally speaking, and supportive uh, supply demand dynamic uh, compared to historical averages.

So with that as a backdrop, even though we've kind of mentioned uh or heard one of your previous guests talk about spreads being a little bit tight, the the growth and the expansion of the uh the public markets has become a very attractive place to be.

And so I would say for investors worried about broad market high yield ETF exposures that might drift down into the lower credit quality tier, the fund gives them a chance to invest where in in a product that's quality aware uh actively riskmanaged.

Um and it's a chance to go and be in the upper tier of the high yield space.

Uh which makes a lot of sense and it's a place that I've invested in for over the past 30 odd years.

Um the Gabelli highinccome bond or the high income ETF gives investors access to this opportunity set built bond by bond through our research driven process making a compelling addition to one's asset allocation plan or even an alternative some to some private credit exposures. >> And we are out of time.

Wayne, thank you so much for your insights and best of luck with your latest ETF. >> Well, thank you for the opportunity to visit with you today and share our story.

And that does it for today's episode of First Look ETF.

If you enjoyed the show, please tell us in the comments section below and by hitting the like button.

Want to give a big thanks to all of our guests along with Mel Leum at the New York Stock Exchange.

Be sure to check out ETF Central.com to learn more.

I'm Stephanie Stanton with ETFU.

Thank you so much for watching.

We'll see you next time.