Toronto-based Arrow Capital Management Inc. has announced the launch of its first actively managed bond ETF series.

The new ETF series provides an additional access point to Exemplar Investment Grade Fund. Units of the ETF began trading Dec. 1 on the Toronto Stock Exchange.

Exemplar Investment Grade Fund is designed to remove interest rate exposure of corporate bonds. As a result, investors are protected from capital losses due to increasing interest rates.

The fund is a credit strategy that seeks to generate attractive risk-adjusted returns with low volatility and a focus on capital preservation.

“We want to provide investors with greater accessibility to our bond products,” says Mark Purdy, managing director and chief investment officer of Arrow, in a statement. “The new ETF offering complements our existing line up and allows investors to choose a product that best fits their needs.”

Arrow is the trustee, manager and promoter of the fund. Toronto-based East Coast Fund Management Inc. is the portfolio advisor and actively manages the fund.