Touchstone Investments, an affiliate of the Western & Southern Financial Group, has introduced its first ETFs, a suite of four actively managed funds delivering core investment strategies.
Blake Moore, President and CEO of Touchstone Investments.
Each of the four ETFs has a corresponding Touchstone mutual fund that shares a similar core investment strategy.
Touchstone markets its investment approach as being ‘Distinctively Active’, a commitment to alpha seeking through high-conviction positions combined with rigorous risk management.
The firm adopts a fully integrated process for identifying and collaborating with best-in-class asset managers to sub-advise its funds – the four new Touchstone ETFs are overseen by Fort Washington Investment Advisors, a long-time sub-advisor of the existing Touchstone mutual funds.
Blake Moore, President and CEO of Touchstone Investments, commented: “Distinctively Active management has long been the hallmark of Touchstone’s investment philosophy, and we are excited to extend that to investors through our ETF offerings. ETFs have grown in popularity among investors in recent years so extending our Distinctively Active approach into ETFs is a natural expansion of our core competencies.”
Maribeth S. Rahe, President and CEO of Fort Washington Investment Advisors, added: “We are excited to continue our relationship with Touchstone through the launch of four ETFs. We believe specialization is required in increasingly complex markets, and we look forward to employing uncompromised focus with Touchstone to bring these investments forward.”
The Funds
The Touchstone Strategic Income Opportunities ETF (SIO US) delivers a multi-sector bond strategy targeting income-producing securities including corporate debt, mortgage- and asset-backed securities, US and foreign government bonds, and preferred stocks. Up to 50% of the portfolio may be invested in debt rated below investment grade. Focusing on providing high levels of income and total return, Fort Washington employs a high conviction, bottom-up investment approach coupled with sector diversification and diligent risk management. The fund has been listed on NYSE Arca with an expense ratio of 0.65%.
The Touchstone Dividend Select ETF (DVND US) consists of 40 to 55 US large-cap companies that have historically paid consistent, growing dividends. Fort Washington seeks out firms with sustainable competitive advantages that trade at reasonable valuations compared to their intrinsic value. The fund has also been listed on NYSE Arca, coming with an expense ratio of 0.67%.
The Touchstone US Large Cap Focused ETF (LCF US) holds between just 25 and 40 US-listed companies with market capitalizations above $5 billion. Fort Washington deploys a similar investment approach by focusing on companies with reasonable valuations and distinctive barriers to entry in their respective markets. The fund has been listed on Cboe BZX Exchange with an expense ratio of 0.69%.
The Touchstone Ultra Short Income ETF (TUSI US) seeks to maximize total return consistent with the preservation of capital by investing in high-quality fixed income securities while maintaining a portfolio duration of under one year. Up to 15% of the fund’s assets may be invested in debt rated below investment grade. Fort Washington places a greater emphasis on structured product sectors (mortgage- and asset-backed securities and collateralized loan obligations) while also maintaining meaningful exposure to corporate credit. The portfolio may also include municipal bonds, US Treasuries, and various types of cash-equivalent securities. The fund has also been listed on Cboe BZX Exchange, coming with an expense ratio of 0.39%.