New bond ETF offers weekly payouts

TGIF is the ticker for the exchange-traded fund, which will distribute cash each Friday

Investors looking for more frequent bond payouts may soon have the option to buy an exchange-traded fund that will distribute cash every Friday.

The SoFi Weekly Income ETF will trade under the ticker TGIF and focus on investment-grade and high-yield corporate bonds, according to a filing with the Securities and Exchange Commission. The fund will be actively managed and primarily hold securities maturing in less than three years.

The Friday payouts could be an attempt to attract older investors looking for more frequent income payments, said Eric Balchunas, a Bloomberg Intelligence ETF analyst. Most bond ETFs have monthly distributions, he said.

TGIF’s debut would also add further momentum to one of the hottest trends in the ETF market. Actively managed ETF launches are outpacing passive for the first time in 20 years. As of Thursday, 68 active exchange-traded funds had started trading in 2020, compared with 63 passive ones, according to data compiled by Bloomberg.

[More: BlackRock expects bond ETF assets to hit $2T by 2024]