Allspring Makes ETF Debut in Active Fixed Income

How Do the New Allspring ETFs Work?

Allspring Broad Market Core Bond ETF

AFIX

-0.48%

The Allspring Broad Market Core Bond ETF (AFIX) aims to provide investors with total returns through a combination of income and capital appreciation. The fund primarily invests in high-quality debt securities, including corporate, municipal, mortgage-backed, and U.S. government bonds. A maximum of 20% of the portfolio may be allocated to U.S. dollar-denominated foreign bonds.

To manage risk and enhance returns, AFIX employs a strategy focused on diversification, liquidity, and interest rate risk management. The fund's duration is closely aligned with the Bloomberg U.S. Aggregate Bond Index, which stood at 6.14 years as of October 31, 2024. Additionally, AFIX may utilize futures contracts to further optimize its portfolio.

AFIX is managed by Galliard Capital Management, a subsidiary of Allspring with more than $80 billion in assets under management and a 29-year history of focusing exclusively on institutional fixed income investing. The ETF makes one of Galliard’s long-standing institutional strategies available to everyday investors—offering active core bond exposure with a focus on fundamental research and relative value analysis, high-quality spread sectors, and a disciplined value investing process with broad diversification and an emphasis on risk control.

Allspring Core Plus ETF

APLU

-0.43%

The Allspring Core Plus ETF (APLU) is designed to generate income and capital appreciation through a diversified portfolio of debt securities. The fund allocates to both U.S. aggregate or “core” sectors and non-benchmark or “plus” sectors, allowing for a broader opportunity set of exposures across global fixed income markets. At least 80% of the fund's assets are invested in debt securities, including high-yield bonds, foreign issuers, and emerging market debt.

The fund employs a disciplined investment process that combines macroeconomic analysis with in-depth credit research, analyzing a number of factors to identify attractive investment opportunities. Thefund  may also use derivatives to help manage risk and enhance returns.

The fund's duration is closely aligned with the Bloomberg U.S. Aggregate Bond Index, providing investors with exposure to interest rate risk similar to the benchmark.

Allspring Income Plus ETF

AINP

-0.36%

The Allspring Income Plus ETF (AINP) aims to provide investors with income and capital growth by investing in a diversified portfolio of income-producing securities. This includes corporate debt, mortgage-backed securities, preferred stocks, and emerging market bonds.

AINP actively manages its portfolio, with the flexibility to invest up to 100% of its assets in foreign or below-investment-grade debt securities. The fund also actively manages currency exposures to optimize returns.

With a duration range of 0 to 6 years, AINP employs rigorous credit research to identify attractive investment opportunities and adjust the portfolio to changing market conditions.

Both APLU and AINP offer fixed income investors an opportunity to enhance total return and income potential through Allspring’s skilled active management capabilities, access to out-of-benchmark “plus” sectors, and fund strategy differentiators. These include a six-month outlook; the use of multiple levers, including duration and curve positioning, sector allocation, and security selection; and an unbiased approach to seeking value opportunities and diversified sources of alpha across the global landscape. Both ETFs are managed by Allspring’s Plus Fixed Income team, a seasoned group of 19 investment professionals with an average of 25 years of industry experience.

AFIX, APLU and AINP have expense ratios of 0.19%, 0.30% and 0.35% respectively.

Allspring Brings Decades of Expertise to the ETF Arena

Allspring has a rich history of active investing, with decades of experience developing and refining a wide array of investment strategies aimed at delivering superior outcomes for clients. The newly launched ETFs provide investors with an attractive option for accessing well-established, successful fixed income strategies offered by Allspring with all of the benefits of the ETF structure.

“We are proud to be expanding our product set with active ETFs—reflecting our commitment to providing our strategies across a range of vehicles to meet investors’ particular needs and provide better outcomes,” said Rick Genoni, global head of Product Development and Innovation and leader of Allspring’s ETF initiative.

In addition to their fixed-income offerings, Allspring has plans to launch active equity ETFs early next year.

For more information on Allspring’s active ETFs, visit www.allspringglobal.com/ETFs.

About Allspring Global Investments

Allspring Global Investments is an independent asset management firm based in Charlotte, North Carolina, established in November 2021 after separating from Wells Fargo Asset Management. With $590 billion in assets under advisement as of September 2024, Allspring’s vision is to inspire a new era of investing that pursues both financial returns and positive outcomes. The firm operates through 20 global offices and boasts a diverse team of over 400 investment professionals.

¹ https://www.allspringglobal.com/about-us/

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.