Pacer ETFs and Barings have launched two actively managed fixed-income ETFs aimed at investors seeking higher income and diversification beyond traditional bond allocations.

The new funds — the Pacer Barings CLO Market Flex ETF (NASDAQ:AAAP) and the Pacer Barings Secured Credit Flex ETF (NASDAQ:PBSC) — provide access to institutional-style credit strategies through the ETF wrapper, a segment that has seen growing investor interest amid elevated interest rates and shifting credit market dynamics.

The launch also deepens the strategic partnership between Pacer and Barings, combining Pacer’s ETF distribution network with Barings’ expertise in structured finance and global credit investing.

Sean O’Hara, president of Pacer ETF Distributors, said investors are increasingly looking beyond traditional fixed income for diversification and income opportunities, creating demand for actively managed credit strategies that can adapt to different market environments. Scott Roth, head of Global High Yield at Barings, described the ETF launches as an important milestone that broadens access to the firm’s institutional credit capabilities while supporting expansion in wealth management channels.

Key Features Of The New ETFs

Pacer Barings CLO Market Flex ETF (AAAP)

  • Actively managed CLO debt strategy focused on current income and capital preservation.
  • Invests in collateralized loan obligation debt securities.
  • Provides exposure to an asset class traditionally utilized by institutional investors.
  • Targets income generation, floating-rate exposure, and fixed-income diversification.
  • Invests across multiple CLO debt rating categories.
  • Maintains an overall investment-grade quality profile.

Pacer Barings Secured Credit Flex ETF (PBSC)

  • Seeks a high level of current income and capital preservation.
  • Targets capital appreciation as a secondary objective.
  • Invests across a broad range of secured credit opportunities.
  • Portfolio may include senior secured loans, corporate bonds, CLOs, and other collateral-backed debt instruments.
  • Uses active management to identify attractive risk-adjusted opportunities.
  • Emphasizes investments supported by collateral and structural protections.

By The Numbers

  • Pacer ETFs manages 71 ETFs.
  • The firm oversees more than $41 billion in assets under management as of May 31.

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