ETF newcomer the Minnesota-based Aware Asset Management is listing an actively managed ultra-short duration ETF that tries to beat 3-month treasuries by 1% a year. The Aware Ultra-Short Duration Enhanced Income ETF (AWTM) will invest in US-dollar-denominated debts with an overall effective duration of less than one year, the prospectus says.
The fund is more or less unconstrained in what it can invest it. It can invest in almost any kinds of debts of any credit rating - including non-agency backed MBS, convertibles, Rule 144A securities, and junk bonds. It can also position into cash, buy derivatives and short sell as the advisors see fit.
However, the fund will mostly invest in investment grade debts. It will strive to meet the insurance industry's standards of investment-grade credit, the prospectus says. We are unsure if this means it will target insurers.
AWTM is not a money market fund and does not seek to maintain a stable NAV of $1.00 per share.
The fund charges 0.23%.