TCW files 0.40% summary prospectus for Securitized Income ETF

TCW ETF Trust on Thursday filed a Rule 497(k) summary prospectus for an actively managed book of mortgage- and asset-backed debt, —TIZE, that takes the performance history of TCW MetWest Sustainable Securitized Fund as a result of a reorganization. The paper is dated August 28. It says that before the reorganization the ETF had not commenced operations.

The fund charges a 0.40% unitary management fee. Distribution and service fees are 0.00%, other expenses are estimated at 0.00% for the current fiscal year, and total annual fund operating expenses are 0.40%. TCW Investment Management Company LLC pays ordinary operating costs except the management fee, interest, taxes, trading costs, distribution expenses, litigation, and extraordinary items. Under normal circumstances the fund invests at least 80% of net assets, plus any borrowings for investment, in debt issued by securitized vehicles and similar instruments, including residential and commercial mortgage-backed securities, other asset-backed paper, real-estate-related debt, and mortgage pass-throughs. It may hold below-investment-grade bonds and foreign-currency securitized debt without limit. The predecessor’s portfolio turnover was 354% in the fiscal year ended March 31.

The summary prospectus says shares are listed and traded on NYSE Arca. Elizabeth (Liza) Crawford, Palak Pathak, Peter Van Gelderen, and Bryan T. Whalen, CFA, are jointly responsible for day-to-day management and have each run —TIZE since inception. Crawford and Pathak managed the predecessor from its inception; Van Gelderen has done so since 2023.

As of the reorganization, the paper replaces the Bloomberg U.S. Mortgage-Backed Securities Index with the ICE BofA Low Duration U.S. ABS & CMBS Equal Par Index as the secondary benchmark, a low-duration gauge of asset-backed and commercial mortgage-backed securities. The filing states that the new index more closely reflects the market segment in which the fund invests.