CHATHAM, N.J.--(BUSINESS WIRE)--DriveWealth, LLC (DriveWealth), a leading global brokerage infrastructure platform, today announced the planned launch of a new lineup of yield-focused fixed income ETFs, providing retail investors alternatives to low yielding cash accounts. The new ETFs will be powered by the YieldX platform, a cutting-edge API-driven fixed income digital platform that uniquely leverages AI with the aim to optimize yield, expenses and risk-adjusted returns based on investors’ desired risk/reward profiles. On July 27, DriveWealth will launch two ETFs on the NYSE Arca platform - DriveWealth Steady Saver, ETF ticker: STBL, and DriveWealth Power Saver, ETF ticker: EERN (collectively the “Funds” or “ETFs”), with target net yields of 3% and 8% respectively. DriveWealth’s global B2B partners will also have the opportunity to “white-label” the ETFs or work with YieldX to create their own suite of custom, branded fixed income ETFs suitable for their customer base.
“For too long, bank savings accounts and CDs have yielded next to nothing, and in many parts of the world, savers are effectively forced to pay banks to keep their money,” said Bob Cortright, Founder and CEO of DriveWealth. “This has led to a lot of frustration as consumers desire to earn something on their hard-earned savings without taking too much risk. Our partners have been asking for thoughtful solutions to this problem—their investors want access to investments that provide income, diversification and an attractive return on capital. With YieldX, we believe we’re bringing innovative technology, investing and risk management processes from a proven team of Wall Street veterans straight to Main Street for the benefit of yield-starved global consumers. The DriveWealth ETFs can be an important part of a saver’s financial picture and a retail investor’s overall portfolio.”
The DriveWealth ETFs will be actively managed by the YieldX team of experienced portfolio managers and quantitative analysts leveraging their unique analytics platform, which aims to optimize target yield levels while minimizing the risk and expense taken for each unit of income. STBL utilizes the Bloomberg Barclays US Universal Bond Index as the primary index and the YieldX Optimized Liquid Income Index as the secondary index. EERN utilizes Bloomberg Barclays US Corporate High Yield Index as the primary index and the YieldX Optimized Liquid Income Target 6% Volatility Index as the secondary index. The YieldX Optimized Liquid Income Index (YOLI) is an independently-verified and calculated index that aims to produce higher yields, less volatility and increased diversification for income-seeking investors over the last decade.
“As a leader in embedded finance, DriveWealth is a great partner for YieldX. We are both technology-forward companies with a mission of making investing easy and accessible to retail investors everywhere. The DriveWealth ETFs are hoping to provide savers and retail investors access to income-generating investment strategies, underpinned by institutional grade portfolio construction, optimization, and risk analytics that have only been previously available to Wall Street clients—this is so powerful.” - Adam Green, CEO of YieldX
About DriveWealth ETFs
The DriveWealth Steady Saver ETF (STBL) is designed to generate monthly income and offer savers an attractive yield over CDs or money market funds. STBL seeks to generate a target net yield of 3% while aiming to minimize the risk level relative to similar-yielding products. The DriveWealth Steady Saver ETF will have an expense ratio of 0.66%.
The DriveWealth Power Saver ETF (EERN) is designed for investors looking to diversify their equity portfolio with an income-producing fixed income vehicle. EERN seeks to target a net yield of 8% while aiming to minimize the risk level relative to similar-yielding products. The DriveWealth Power Saver ETF will generate monthly income and have an expense of 1.49%.
Partnership and the DriveWealth ETF Team
DriveWealth ETFs will be administered by The RBB Fund, Inc., an industry-leading series trust platform for funds with over 40 mutual funds and ETFs and approximately $18 billion in assets under management (AUM). Arnie Reichman, the Fund Chairman, stated: “Our most recent relationship with DriveWealth and YieldX illustrates RBB’s continued product innovation in the Series Trust space.” Salvatore Faia, RBB’s President, stated that RBB is the only independent Series Trust with end-to-end adviser solutions. STBL and EERN will be advised by Red Gate Advisers, LLC. Vident Investment Advisory will serve as sub-adviser to the DriveWealth ETFs. US Bank will serve as the custodian, fund administrator and transfer agent for the DriveWealth ETFs.
For more information, see https://funds.drivewealth.com.
A pioneer in fractional investing and embedded finance, DriveWealth has built an API-driven, cloud-based brokerage platform that is transforming the investment landscape by democratizing access to U.S. equities for investors across the globe. With more than 90 partners in over 150 countries around the world, DriveWealth’s mission is to reshape retail investing by enabling banks, global brands, and fintechs to provide investment access and advice to underbanked and underserved customers that was previously only available to the wealthy. For more information, please visit drivewealth.com.
YieldX brings fixed income investing to all with a 100% digital, API-driven platform that helps advisors and portfolio managers leverage sophisticated analytical tools, AI and machine learning to construct fixed income portfolios that deliver higher net returns per unit of risk, versus similarly yielding competitor benchmarks. The YieldX platform offers users unique pushbutton portfolio construction technology underpinned by advanced yield/risk optimization models so YieldX users can easily build and manage tailored, sophisticated fixed income portfolios across the yield/risk spectrum. As an Open API and SaaS platform, YieldX offers complete flexibility, with a choice of end-to-end or stand-alone solutions, custom investment universes, and white-labeled offerings, so clients can select the capabilities that best meet their needs. For more information, visit https://www.yieldx.app.
About RBB Fund
The RBB Fund, Inc., a registered open-end investment management company organized as a series trust under Maryland law, will house the DriveWealth ETFs with responsibility for establishing, servicing and performing corporate governance of the funds. RBB was the first organized multiple series trust founded in 1988 and today oversees approximately $18 billion in assets, supporting ten unaffiliated advisors, over 15 unaffiliated sub-advisors, and over 40 mutual fund or ETF offerings. For more information, please go to www.rbbfund.com.
About Red Gate Advisers
Red Gate Advisers LLC is a multi-boutique registered investment adviser serving as investment adviser to the DriveWealth ETFs with responsibility for reviewing, supervising, and administering fund investment programs. Red Gate personnel bring decades of experience to the table. Red Gate’s industry knowledge in the creation and distribution of ETFs and mutual fund compliance-related matters offers the sage guidance and veteran leadership you want from your partners. For more information, please go to redgateadvisers.com.
Vident Investment Advisory, a subsidiary of Vident Financial formed in 2014, provides sub-advisory services for a variety of index-based and actively managed strategies. VIA’s capabilities extend across multiple asset classes, including U.S. and international equities, fixed income, commodities, as well as long/short, inverse, and managed futures strategies. For more information, please go to www.videntinvestmentadvisory.com.
Before investing in the DriveWealth ETFs (the “Funds”), consider the Funds’ investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, please visit https://www.yieldx.app/, call (800) 516-0851, or download a prospectus at funds.drivewealth.com, or talk to your financial advisor. Read it carefully before investing.
The Funds’ investments are not individually redeemable. Investors buy and sell shares of the Fund on a secondary market. Only market makers or “authorized participants” may trade directly with the Fund, typically in blocks of 10,000 shares.
Because the Shares are traded in the secondary market, a broker may charge a commission to execute a transaction in the Shares, and an investor also may incur the cost of the spread between the price at which a dealer will buy the Shares and the somewhat higher price at which a dealer will sell the Shares.
Diversification does not eliminate the risk of experiencing investment loss.
Market participants may attempt to reverse engineer a Fund’s trading strategy, which, if successful, could increase opportunities for trading practices that may disadvantage the Funds and their shareholders.
The Funds are subject to certain other risks, including, but not limited to, principal investment risk, interest rate risk, active management risk, call risk, reinvestment risk, prepayment risk, credit/default risk, inflation rate and bond duration risk, liquidity risk and market risk, among others. Investing involves risk, including possible loss of principal. Past performance is no guarantee of future results. Gains or losses on a single security may have a greater impact on the Funds. For these and other reasons, there is no guarantee the Funds will achieve their stated objective.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Funds. Investors may purchase or sell individual shares on an exchange on which they are listed. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. Eastern time (when NAV is normally determined for most ETFs), and do not represent the returns you would receive if you traded shares at other times.
The DriveWealth Funds are the property of YieldX Advisers, LLC, DriveWealth, LLC and Red Gate Advisers, LLC. The content of this website is intended for information purposes only. No portion of the content should be considered a solicitation to buy or an offer to sell shares of the fund in any jurisdiction where the solicitation or offer would be deemed unlawful under the securities laws of such jurisdiction.
The DriveWealth Funds are distributed by Vigilant Distributors, LLC, member of FINRA and SIPC.
Not FDIC Insured • No Bank Guarantee • May Lose Value.