SMTH Profile
The ALPS ETF Trust - ALPS/Smith Core Plus Bond ETF is strategically designed to provide investors with comprehensive exposure to a diverse array of fixed-income securities. The fund commits to investing at least 80% of its net assets, including any borrowings, in a broad range of bond instruments. This includes government notes and bonds, corporate bonds, convertible bonds, and a variety of mortgage-backed securities, such as those backed by commercial and residential mortgages. Additionally, the fund may hold zero-coupon bonds, which do not pay periodic interest but are issued at a discount and mature at face value.
Beyond traditional bond investments, the ALPS/Smith Core Plus Bond ETF may also allocate assets to asset-backed securities, which are backed by various types of collateral such as receivables or loans. The fund incorporates money market instruments to manage short-term liquidity needs and reduce overall portfolio volatility. Furthermore, it has the flexibility to invest in commercial loans and foreign debt securities, including those from emerging markets, broadening its exposure and potentially enhancing returns.
The investment strategy of the fund is designed to capture a wide spectrum of fixed-income opportunities, balancing traditional and alternative bond investments. This approach aims to optimize yield while managing risk through diversification across various types of debt securities. By incorporating both domestic and international debt, including high-yield and investment-grade bonds, the fund seeks to deliver competitive returns with a robust risk management framework.
With its core plus strategy, the ALPS/Smith Core Plus Bond ETF is positioned to appeal to investors looking for broad fixed-income exposure that goes beyond standard investment-grade bonds. The fund’s approach includes a dynamic allocation across different sectors and credit qualities, making it a versatile option for those seeking to diversify their bond holdings and access a range of income-generating assets in both domestic and global markets.
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