Cohen & Steers has broadened its selection of actively managed Exchange Traded Funds, introducing two new investment vehicles tailored to address the escalating investor interest in dynamic investment strategies. These new additions expand the firm's total active ETF count to five, signifying a strategic move to capture emerging market opportunities and fulfill diverse investor needs.
On December 10, the market welcomed the Cohen & Steers Infrastructure Opportunities Active ETF (CSIO) and the Cohen & Steers Short Duration Preferred & Income Active ETF (CSSD). These products are poised to offer distinct advantages. CSIO is meticulously crafted as a high-conviction portfolio, unconstrained by traditional benchmarks, and invests in global infrastructure companies. Its core objective is to capitalize on enduring growth trends, particularly those stemming from the soaring demand for electricity driven by advancements in data centers and artificial intelligence technologies.
Conversely, CSSD is designed to appeal to income-focused investors by offering reduced exposure to interest rate fluctuations. This ETF employs a systematic methodology, concentrating on short-duration investment-grade institutional preferred securities. The primary goal of CSSD is to serve as an attractive alternative to conventional short-term fixed-income investments, prioritizing both tax efficiency and superior credit quality within its investment framework.
Executives at Cohen & Steers emphasized the increasing appetite among investors, especially wealth managers, for actively managed ETFs. They noted a shift away from traditional 60/40 portfolios, as investors seek more agile and specialized investment avenues. Furthermore, the company highlighted what it perceives as favorable market conditions for real assets and preferred stocks, suggesting a strategic timing for these new product launches. The firm's commitment to building out its active ETF platform throughout 2025 is evident, with previous launches earlier in the year focusing on real estate, natural resources, and other preferred securities. Cohen & Steers aims to integrate its extensive knowledge in listed real assets with the inherent benefits of the ETF structure, such as seamless intraday liquidity, enhanced transparency, and advantageous tax efficiency.
The introduction of CSIO and CSSD underscores Cohen & Steers' dedication to evolving its investment product offerings, providing investors with sophisticated tools to navigate complex markets and pursue their financial objectives through expertly managed and transparent fund structures.