WESTERN ASSET TOTAL RETURN ETF (WBND)
The latest addition to the Legg Mason ETF lineup.
WBND looks beyond the traditional core exposures found in the Bloomberg Barclays U.S. Aggregate Bond Index to deliver broad market diversification combined with ample investment flexibility to target value opportunities, manage risk, pursue income and maximize total return.
Western Asset Total Return ETF Highlights
Managed by Western Asset Management, an affiliate of Legg Mason and a market leader in active fixed income investing with more than 45 years of experience and 129 investment professionals.
Provides opportunistic exposure beyond the Bloomberg Barclays U.S. Aggregate Index, including high yield bonds, inflation-linked bonds, bank loans, non-U.S. bonds, emerging market debt and other non-benchmark sectors.
Active management of duration, sector and security selection—providing greater flexibility to respond to dynamic market conditions, manage risk and maximize total return.
The Manager: Western Asset
Western Asset, one of the world's leading fixed income managers, was founded in 1971. The firm has nine offices around the globe and deep experience across the range of fixed income sectors. Western Asset has been recognized for its emphasis on team management and intensive proprietary research, supported by robust risk management.
Considerations for Active Management
The composition of the fixed income market has changed, and we believe that the Bloomberg Barclays U.S. Aggregate Index is more limiting than many investors realize. Some bond managers following that index may not provide exposure to multiple sectors, which could ultimately lead to reduced diversification. That may dramatically inhibit your return potential and increase concentration risk.
The Bloomberg Barclays U.S. Aggregate Bond Index Is Missing 65% of the Global Debt Market
Source: Bloomberg, Legg Mason, Western Asset. As of June 18, 2018.
Why an Exchange-Traded Fund (ETF)
With a net expense ratio of .45% (and gross expense ratio of .49%)*, WBND can be a cost effective strategy to gaining broad-based, active core fixed income exposure
The ETF vehicle offers an extra layer of liquidity and can be traded throughout the day
The availability of daily holdings may allow investors to make more informed investment decisions
*Gross expenses are the Fund's total annual operating expenses. Net expenses reflect contractual fee waivers and/or reimbursements, where these reductions reduce the Fund's gross expenses, which cannot be terminated prior to December 31, 2019 without Board consent.
An actively managed strategy that seeks to maximize total return consistent with prudent investment management and liquidity needs.
Views from Western Asset
A white paper from Western Asset that makes the case for active management.
The Case for Active Management Now
Why active management may be well-suited for stock and bond investors in today's market environment.
All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s web page for specific details regarding investment objective, risks, performance and other important information. Review this information carefully before you make any investment decision.
An investor cannot invest directly in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges.
Fixed-income securities involve interest rate, credit, inflation, and reinvestment risks; and possible loss of principal. As interest rates rise, the value of fixed-income securities falls.
International investments are subject to special risks including currency fluctuations, social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.
The opinions and views expressed herein are not intended to be relied upon as a prediction or forecast of actual future events or performance, guarantee of future results, recommendations or advice. Statements made in this material are not intended as buy or sell recommendations of any securities.
Forward-looking statements are subject to uncertainties that could cause actual developments and results to differ materially from the expectations expressed. This information has been prepared from sources believed reliable but the accuracy and completeness of the information cannot be guaranteed. Information and opinions expressed by either Legg Mason or its affiliates are current as at the date indicated, are subject to change without notice, and do not take into account the particular investment objectives, financial situation or needs of individual investors.
Diversification does not guarantee a profit or protect against a loss.
Active management does not ensure gains or protect against market declines.
Yields and dividends represent past performance and there is no guarantee they will continue to be paid.
High yield bonds are subject to greater price volatility, illiquidity, and possibility of default.
Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks.
U.S. Treasuries are direct debt obligations issued and backed by the "full faith and credit" of the U.S. government. The U.S. government guarantees the principal and interest payments on U.S. Treasuries when the securities are held to maturity. Unlike U.S. Treasury securities, debt securities issued by the federal agencies and instrumentalities and related investments may or may not be backed by the full faith and credit of the U.S. government. Even when the U.S. government guarantees principal and interest payments on securities, this guarantee does not apply to losses resulting from declines in the market value of these securities.
The Fund is newly organized, with a limited history of operations. Derivatives, such as options and futures, can be illiquid, may disproportionately increase losses, and have a potentially large impact on fund performance. The use of leverage may increase volatility and possibility of loss. Potential active and frequent trading may result in higher transaction costs and increased investor liability. In certain circumstances it may be difficult to sell the fund's investments because there may not be enough demand for them in the markets, in which case the fund may not be able to minimize a loss on such investments. Lower rated or unrated bonds of similar quality, carry a higher degree of risk than higher rated bonds. Securities with floating or variable interest rates may experience losses in value if their rates do not keep pace with similar market rates. Securities listed under Other US and Non US include additional risks and may be more volatile than the securities listed in the Bloomberg Barclays US Aggregate Bond Index. Currencies contain heightened risk that include market, political, regulatory, and natural conditions and may not be suitable for all investors.