Build Asset Management launches new fund on NYSE

Local investment strategist group Build Asset Management has launched its first new exchange-traded fund (ETF) said to offer persistent growth and downside protection on the New York Stock Exchange.

The BUILD Bond Innovation ETF (BFIX), a new class of fund, leads with a defensive plan. Fixed income assets typically make up 90-95 percent to lower downside risk, or the risk associated with losses, over the long-term as opposed to the more common 60-40 portfolio split.

BFIX requires investment-grade credit quality in its bond holdings and is meant to keep a moderate duration profile, meaning it strives to equally balance protection against losses while still growing investments.

The remainder of the funds are dedicated to more proactive moves, like going into an actively managed overlay (which tracks an investor's combined position through their various accounts) on large-cap equities -- companies with a market capitalization value exceeding $10 billion. This move focuses on a risk-managed exposure to price performance, according to Build.

The fund aims to weather declines through broad market funds while looking for potential upsides through its strategy and a fixed-income profile.

"We designed BFIX with the voice of the American retiree and traditional bond investor in mind. These investors often wonder how they can achieve meaningful returns with a defensive mindset," said John Ruth, Build Asset Manager co-founder and CEO. "We hope BFIX will serve as a timely compliment to a well-diversified portfolio for years to come."

This is believed to be the first ETF to launch out of Jefferson City, according to the news release. Build Asset Management has been active in the Jefferson City area since 2018.