ARCM Profile
The Arrow Reserve Capital Management ETF is designed to provide investors with a conservative approach to income generation by focusing on a diversified portfolio of domestic fixed income securities. The fund primarily invests in high-quality, U.S. dollar-denominated fixed income instruments with a short-term, dollar-weighted average effective maturity ranging from 0 to 2 years. This short duration strategy aims to minimize interest rate risk, making the fund suitable for investors seeking stability and modest income in a low-risk investment vehicle.
The funds portfolio includes a broad array of fixed income securities, such as mortgage-backed and asset-backed securities. These instruments are carefully selected based on their credit ratings, with the fund primarily investing in securities rated Baa- or higher by Moodys Investors Service, Inc., or equivalently rated by Standard & Poors Ratings Services or Fitch, Inc. In cases where securities are unrated, the funds sub-advisor applies rigorous analysis to ensure they are of comparable quality. This focus on investment-grade securities helps to reduce default risk and maintain a reliable income stream for investors.
The Arrow Reserve Capital Management ETF employs a disciplined approach to managing its fixed income portfolio, with an emphasis on liquidity and capital preservation. By maintaining a short-term maturity profile, the fund seeks to protect investors from the adverse effects of rising interest rates, while still providing exposure to a diversified mix of fixed income securities. The inclusion of mortgage- and asset-backed securities adds an additional layer of diversification, helping to spread risk across various sectors of the fixed income market.
This ETF is particularly well-suited for conservative investors who prioritize capital preservation and seek a steady income stream with minimal volatility. The funds focus on high-quality, short-duration fixed income securities makes it an attractive option for those looking to park capital in a low-risk, income-generating investment. Additionally, its emphasis on credit quality and diversification provides an added layer of security, ensuring that the fund remains resilient in various market conditions. The Arrow Reserve Capital Management ETF offers a prudent approach to fixed income investing, balancing the need for income with the preservation of capital.
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