DriveWealth partners can also “white-label” the ETFs under their own name and branding
DriveWealth, LLC, 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