Product & Service Launches – 7/11/24

T. Rowe Price Adds 1st Tax-Free Fixed-Income ETF

T. Rowe Price has added its first federally tax-free fixed-income exchange-traded fund to its ETF roster.

The T. Rowe Price Intermediate Municipal Income ETF is trading on the NASDAQ, with a strategy focused on investment-grade, intermediate-term municipal bonds with maturity of four to 12 years.

The ETF is co-managed by James Lynch and Charlie Hill, who have run portfolios for other T. Rowe Price intermediate-term municipal bond strategies. The ETF seeks “the highest level of income exempt from federal income taxes consistent with moderate price fluctuation” and has a net expense ratio of 0.24%, according to the firm.

The ETF brings T. Rowe Price’s active lineup to 16, all launched since August 2020.

Broadridge Launches Values-Based Investing Tool for Advisers

Broadridge Financial Solutions Inc. has partnered with an outside company to add a values questionnaire and values-based data analytics tool to its adviser platform.

The firm announced it is partnering with YourStake.org PBC’s Values Questionnaire and data system to offer advisers an investment recommendation that “avoids or increases exposure to specific companies, sectors, or business practices based on their clients’ intrinsic beliefs.”

The questionnaire will be available on Broadridge’s Wealth Aggregation and Insights platform, with the pitch of bringing “greater portfolio personalization” that can align with adviser clients’ values.

“Broadridge recognizes the importance of hyper-personalization that investors have come to expect when seeking financial advice and how AI and data-driven insights enable advisors to differentiate themselves and create new revenue opportunities,” said Paul Camuto, vice president and product head of data aggregation wealth at Broadridge, in a statement.

Principal Launches Annuity with Guaranteed Lifetime Income

Principal Financial Group Inc. is in market with its second registered index-linked annuity to create a guaranteed lifetime income stream for retirement.

The RILA, called Principal Strategic Income, uses a guaranteed lifetime withdrawal benefit to provide a secure source of income in retirement, regardless of investment market performance or lifespan of the purchaser.

Available for sale to clients from financial professionals, Principal Strategic Income has two options for distribution: 1) a level amount every year that never decreases or 2) a tiered amount that provides higher income initially and then decreases if the account value reaches zero.

“The record wave of people turning 65 years of age every day has created a market for annuity solutions that is significantly greater than we have seen in the past, magnifying how important they can be to investors during their peak planning stages,” said Sri Reddy, senior vice president for retirement and income solutions at Principal, in a statement.

Rather than locking in an income decision at contract issuance, the RILA allows purchasers to change their income option one time before income payments start.

Principal’s first RILA was launched in 2023.