TCW Launches Two New Active ETFs and Converts Three Mutual Funds to Active ETFs, Allowing Investors and Wealth Managers More Options to Access Fixed Income Strategies

The TCW Group, a leading global investment firm, announced today a significant expansion of TCW’s suite of actively managed ETFs to advisors, investors, and institutions, with the launch of two new fixed income exchange-traded funds (ETFs) and the conversion of three other fixed income mutual funds to ETFs.

“For more than 50 years, investors have trusted TCW to provide active strategies across fixed income, equities, emerging markets, and alternative investments,” said Jennifer Grancio, Global Head of Distribution at TCW. “The expansion of our ETF suite provides investors with a broader range of precision products that allow investors to capitalize on attractive alpha opportunities while actively seeking to mitigate downside risk.”

The TCW Fixed Income ETF expansion consists of:

Two new actively managed fixed income ETFs:

  • TCW Multisector Credit Income ETF (MUSE), which seeks long-term income with the flexibility to invest across high-yield bonds, senior loans, and emerging market credit, adjusting sector allocations based upon changing market conditions and relative value.
  • TCW AAA CLO ETF (ACLO), which seeks to generate current income and preserve capital by providing access to the institutional AAA-rated CLO market.

Three mutual funds that have been converted to actively managed fixed income ETFs:

  • TCW High Yield Bond ETF (HYBX), formerly the TCW High Yield Bond Fund, which seeks to generate income and achieve above average total return consistent with reasonable risk over a full market cycle, by allocating risk to a diverse portfolio of high yield bonds.
  • TCW Corporate Bond ETF (IGCB), formerly the TCW MetWest Corporate Bond Fund, which seeks to maximize long-term total return by allocating to U.S. investment-grade corporate bonds.
  • TCW Senior Loan ETF (SLNZ), formerly the TCW MetWest Floating Rate Income Fund, seeks to generate current income and preserve capital by providing access to the institutional senior loan market.

The new ETFs are characterized by focused bottom-up issue selection, active sector rotation, and opportunities across a broader fixed-income investment universe. As actively managed strategies, TCW portfolio managers will adjust portfolio allocations over time to take advantage of changing market conditions. TCW will utilize bottom-up issue selection to add alpha by identifying issues with superior return profiles. The goal is to provide investors with transparency, intraday trading, and price discovery.

“Using our decades of experience in fixed income, we apply a key understanding of the credit markets to apply diligent issue selection matched with an active approach that is responsive to changes across the economic cycle,” said Jeffrey T. Katz, Managing Director, Fixed Income, at TCW. “These new ETFs are essential tools for investors and their clients to access opportunities in fixed income to serve as a potential consistent source of income, help stabilize and diversify a portfolio during periods of volatility, and have the ability to generate attractive total returns across market environments.”

Our new ETFs join the current fixed income offering TCW Flexible Income ETF (FLXR) a multi-sector bond fund that seeks to generate consistent income through the flexibility to invest across sectors, dynamically shifting allocations based on changing market conditions and relative value.

Additionally, these fixed income opportunities join TCW’s current equity ETFs franchise:

  • TCW Artificial Intelligence ETF (AIFD), which invests in companies across sectors leading the development and commercialization of artificial intelligence technology.
  • TCW Compounders ETF (GRW), which invests in industry leading companies with predictable business models generating consistent free cash flow and compounding returns for the long-term.
  • TCW Transform Supply Chain ETF (SUPP), which invests in companies across sectors that are driving and benefiting from the relocalization of global supply chains to North America.
  • TCW Transform Systems ETF (NETZ), which invests in companies across sectors that are driving and benefitting from the energy transition.
  • TCW Transform 500 ETF (VOTE), a low-cost, passive market cap fund, capturing over 80% of the U.S. publicly traded stocks. By actively voting and directly engaging companies on material issues we are driving long-term value.

For more information, please visit https://www.tcw.com/Products/ETFs.

About The TCW Group

TCW is a leading global asset management firm with a broad range of products across fixed income, alternative investments, equities, and emerging markets with over half a century of investment experience. Through its ETFs, TCW MetWest Funds, and TCW Funds, TCW manages one of the largest fund complexes in the U.S. TCW’s clients include many of the world’s largest corporate and public pension plans, financial institutions, endowments and foundations, as well as financial advisors and high net worth individuals. For more information, please visit www.tcw.com.

This communication is not a solicitation of proxy. This communication is for informational purposes only and does not constitute an offer of any securities for sale. No offer of securities will be made except pursuant to a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

All investments involve risk, including the possible loss of principal. There is no guarantee that the investment objective of a Fund will be achieved. Past performance is no guarantee of future results.

Before investing you should carefully consider the fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus, a copy of which may be obtained from etf.tcw.com. Please read the prospectus carefully before you invest.

Fixed income investments entail interest rate risk, the risk of issuer default, issuer credit risk, and price volatility risk. Funds investing in bonds can lose their value as interest rates rise and an investor can lose principal.

The Fund’s investments denominated in foreign currencies will decline in value if the foreign currency declines in value relative to the U.S. dollar. Fund share prices and returns will fluctuate with market conditions, currencies, and the economic and political climates where the investments are made. MBS related to floating rate loans may exhibit greater price volatility than a fixed rate obligation of similar credit quality. The market for floating rate loans may be illiquid, making it difficult for the Fund to determine the true value of a loan, or to sell its interest in a failing loan promptly or at a profitable price. The collateral for secured loans may be insufficient to cover a default, and the Fund may have limited remedies when a borrower defaults.

High-yield (unrated or rated below-investment grade) loans and bonds have greater credit risk and more volatility than debt instruments rated investment grade. The risk of loss is even greater for unsecured loans. The Fund’s use of leverage (borrowing) and derivatives may increase the volatility of the Fund’s returns. Although the floating rate loans are intended to provide creditors with protection against rising interest rates, some of the debt securities in which the Fund invests will be subject to interest rate risk and may decline in value when interest rates rise. Equity investments entail equity risk and price volatility risk.

The value of stocks and other equity securities will change based on changes in a company’s financial condition and in overall market and economic conditions. The value of the Fund’s share price will fluctuate up or down based on the value of the portfolio holdings, which can be affected by these risks. The Fund’s use of leverage (borrowing) and derivatives may increase the volatility of the Fund’s returns.

The ETFs are advised by TCW Investment Management Company LLC. Distributed by Foreside Financial Services, LLC. Effective October 13, 2023, TCW acquired the Transform ETF business from Engine No. 1 and the funds’ adviser became TCW Investment Management Company LLC. Prior to that date, the funds’ adviser was Fund Management at Engine No. 1 LLC.

Media: Doug Morris Head of Corporate Communications +1-213-244-0509 doug.morris@tcw.com

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