AdvisorShares is prepping another active exchange-traded fund to add to its roster.
The firm is looking to launch the Treesdale Rising Rates ETF within the next few months to bet on mortgage-related products with interest-only cash flows, according to a regulatory filing.
Treesdale Partners, the fund’s sub-advisor, will bet on agency interest-only mortgage-backed securities, interest-only swaps and other mortgage-related derivative instruments. The overall duration of the fund’s fixed income bets will range from -5 to -15 years. The negative duration will be partly offset with long positions in U.S. Treasury obligations, interest rate swaps and other positive duration products, according to the filing.
New York-based Treesdale Partners was established in 2002 and managed some $117 million in assets as of June 1.
AdvisorShares managed 18 active ETFs with some $830 million in assets as of June 5.