Want High Income Without The High Drama? Gabelli's New ETF Delivers

Gabelli Funds has launched its latest product, the Gabelli High Income ETF (NYSE:GBHI), a new foray into the active fixed-income ETF space as investors continue to seek income without overextending for risk. The fund, which began trading on Monday, will pursue high total returns, with an emphasis on current income and capital preservation.

The ETF is managed by Wayne Plewniak, Gabelli's Head of Fixed Income, who oversees a strategy built on bottom-up credit research.

Also Read: Hedge Funds Snap Up Eli Lilly, United Healthcare, And More, Putting Healthcare ETFs Back In The Spotlight

A Focus On "Upper-Tier" High Yield

GBHI primarily invests in upper-tier high yield corporate bonds, generally BB and stronger B-rated issuers, while opportunistically adding investment-grade, hybrid, or equity-related securities where the team identifies compelling value. The goal is to deliver attractive yields while avoiding the pitfalls of lower-quality, distressed debt.

Under normal market conditions, the ETF seeks to maintain an average credit quality of BB- and an effective duration within a range of two to five years. The portfolio is broadly diversified, with exposure to individual issuers capped below 3% and industries capped below 15%, a structure that is designed to keep risk in check while providing room to capture opportunities across the credit spectrum.

Charles LaRosa, Head of ETFs at Gabelli, noted that it is the latest move in the firm’s strategy to turn its long-standing, research-driven investment process into transparent, tax-efficient ETF formats.

Moreover, Plewniak explained that the fund is designed for investors seeking attractive income opportunities in high-yield markets while maintaining disciplined risk management and capital preservation.

Sweetener For Early Investors

To celebrate the launch, Gabelli is waiving the management fee for GBHI for the first year before it transitions to its standard 0.55% fee. The move is likely to draw attention from advisors and income-focused investors who have increasingly shifted toward active bond ETFs for better flexibility and transparency.

With GBHI, Gabelli adds another building block to its growing active ETF shelf, offering a fresh vehicle for investors looking to balance yield generation with steady-handed credit selection-especially in a market where caution and income remain top priorities.

Read Next:

• Don't Be Fooled By Netflix's 90% ‘Drop': Why ETF Investors Are Barely Blinking

Photo: Shutterstock