Cohen & Steers Inc., an asset manager that has traditionally focused on mutual funds and closed-end funds, has launched its first ETFs: three active strategies trading on NYSE Arca.
The new ETFs mirror the firm’s existing investment strategies through an active ETF vehicle. They focus on providing total return, tax-efficient income and portfolio diversification through real estate, preferred securities and natural resource equities strategies.
“The launch of our active ETFs expands access to our flagship investment capabilities across real assets and alternative income,” said Khushbu Gupta, Cohen & Steers head of global product. “We believe these three ETFs along with our existing suite of products can help investors unlock the benefits for our unique asset classes. We are constantly evaluating market trends to identify products that will add most value to our clients and the best delivery mechanism for them.”
One fund is the Cohen & Steers Real Estate Active ETF (CSRE), designed to provide total return and portfolio diversification by accessing a broad universe of listed real estate securities, including U.S. REITs. It is managed by Jason Yablon, head of listed real estate, and portfolio managers Mathew Kirschner and Ji Zhang.
The firm also unveiled Cohen & Steers Preferred and Income Opportunities Active ETF (CSPF), designed to provide tax efficient income, portfolio diversification and total return, by investing across the preferred securities universe with a focus on investment grade, institutional preferreds. CSPF is managed by Elaine Zaharis-Nikas, head of fixed income and preferred securities, and portfolio managers Jerry Dorost and Robert Kastoff.
Lastly, the Cohen & Steers Natural Resources Active ETF (CSNR) is designed to provide total return and inflation protection amidst an era of resource scarcity. It invests in companies involved in the production, extraction and processing of natural resources, including energy, agriculture and metals. CSNR is managed by Tyler Rosenlicht, head of natural resource equities.
“Active ETFs have seen tremendous market growth and have become the preferred vehicle for many wealth managers and their clients,” Daniel Noonan, head of Cohen & Steers’ wealth management consulting group, said in a statement. “Launching active ETFs represents a significant opportunity for Cohen & Steers to expand access to our time-tested strategies in real assets and alternative income. We look forward to educating advisors on how active management in these specialized asset classes can help diversify portfolios and improve client outcomes.”
Noonan added in an interview with WealthManagement.com that the additions were made in response to shifts in the way financial advisors operate.
“Wth that, there’s been a decisive increase in demand for active ETFs,” he said. “The decision to offer our investment capabilities in an active ETF vehicle was based on listening to our clients and providing access to our leading capabilities through our suite of open-ended mutual funds, closed-end funds, SMAs, CITs and now active ETFs.”
