Academy Asset Management has made its ETF debut with the launch of a fixed income fund providing exposure to pools of loans made to military veterans, service members, and their families.

The fund provides exposure to pools of loans made to military veterans, service members, and their families.

The Academy Veteran Impact ETF (VETZ US) has been listed on NYSE Arca with an expense ratio of 0.35%.

According to Academy AM, the ETF represents an ‘impact strategy’ by facilitating the flow of capital to veterans, resulting in lower borrowing costs for veterans and their families.

The ETF primarily invests in mortgage-backed securities that are issued and guaranteed by government-sponsored enterprises such as Ginnie Mae, Fannie Mae, and Freddie Mac. Academy AM harnesses insights from the US Veterans Administration to determine the eligibility of the underlying mortgage loans.

The fund may also invest in securitized pools of small business loans backed by the Small Business Administration (SBA). Eligible loan pools are identified through specific veteran-related codes on the SBA’s loan documentation.

Only investment-grade and US dollar-denominated securities will be selected, while Academy AM utilizes a ‘bottom-up’ fundamentals-driven approach to portfolio construction.