Aristotle Funds debuts three active fixed-income ETFs

Aristotle Funds, a long-established mutual fund manager, introduced three actively managed fixed-income exchange-traded funds on July 30, 2026. The funds — Core Plus Income (ARCP), Short Term Income (SDUR) and Multi-Sector Income (ARMS) — are the firm’s first ETFs and target distinct segments of the bond market.

Each fund combines top-down market analysis with bottom-up security research. Aristotle noted managers can adjust allocations and durations as rate and credit conditions change.

The Core Plus Income ETF (ARCP) primarily holds investment-grade bonds and may allocate up to 25% of its assets to high-yield securities. Aristotle intends ARCP to carry an average duration of about two years relative to broader bond benchmarks, reducing sensitivity to interest-rate moves compared with many traditional core bond funds.

The Short Term Income ETF (SDUR) aims for a weighted average duration of roughly one to four years and invests across a range of fixed-income instruments. The fund is positioned to offer short-duration exposure with lower duration risk than longer-dated bond funds.

The Multi-Sector Income ETF (ARMS) invests across investment-grade debt, high-yield bonds and floating-rate loans. Managers will seek to keep average portfolio duration between zero and eight years, allowing shifts in sector and maturity exposure as market conditions change.

Aristotle said the launches reflect persistent inflationary pressures and market expectations that the Federal Reserve may consider further policy moves. The firm said active management gives its teams the ability to adjust allocations and durations in response to evolving rate and credit conditions.

Dominic Nolan, chief executive officer of Aristotle Pacific Capital, said, “This is an exciting day for all of us at Aristotle as we enter the ETF market. These ETF offerings are built on the expertise of our portfolio management team and rooted in our disciplined investment philosophy.”

The three ETFs join a growing set of actively managed fixed-income ETFs that aim to provide more flexible portfolio management than passive bond funds.