Lazard Hybrid Financial Income ETF (HYFY)
HYFY is an actively managed ETF that seeks differentiated returns by investing in hybrid securities across financial institutions globally.
Tap Into Hybrid Securities for Differentiated Income
Bank and insurance regulators have spent more than a decade requiring stronger capital buffers—and hybrid securities are how issuers meet that bar without diluting shareholders. The result is a market that compensates investors for a specific, well-defined risk: Where a security sits in the capital structure, not the health of the institution behind it.
Regulatory Tailwind
Banks and insurers are required to hold more, higher-quality capital—and hybrid securities are how they raise it.
A Market Now at Scale
Global financial subordinated debt has grown to roughly $1.6 trillion,1 approaching the scale of emerging markets sovereign debt and corporate high yield.
Built-In Credit Support
Subordinated layers absorb losses first, which is how senior creditors stay protected and issuers keep their ratings.
Inside the Capital Stack
Hybrid securities are bonds with some equity-like features, issued by companies across the financials sector: banks, insurers, and financial services companies.
Regulators count them as capital—either Tier 1 (preferred shares as well as AT1 and RT1, also called CoCos) or Tier 2 (subordinated debt). HYFY sources these securities globally, with a primary focus on issuers in Europe and North America
HYFY At-a-Glance
18+ years
Lazard’s track record investing in the asset class
$8.3 Billion
Lazard AUM in subordinated financial debt strategies
Well-Respected Team
A recognized name among bank syndicates and issuers
100% Dedicated
A team solely focused on the asset class
Proprietary Tools
Issuer and security databases, and relative-value screens
A Disciplined, Bottom-Up Process
Bottom-Up by Design
Every position starts with the institution and the instrument. Portfolio weights are an outcome of that research.
PM/Analyst Model
The team’s portfolio managers are analysts first—the same people who research every issuer also manage the capital invested in them.
Benchmark-Aware Construction
Benchmark-agnostic in idea generation and security selection; benchmark-aware in portfolio construction and risk management.
Unlock Income Potential from the Capital Stack
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Important Information
The financial data presented is provided by external sources. Lazard Asset Management LLC takes reasonable care to ensure that the information provided is correct, but it neither warrants, represents nor guarantees the content of the information nor does it accept responsibility for errors, inaccuracies, omissions or inconsistencies.
1 As of 30 September 2026. Source: Lazard Frères Gestion, Bloomberg. Subordinated debt total, converted to USD at EUR/USD 1.13.
Please consider a fund's investment objectives, risks, charges, and expenses carefully before investing. For more complete information about Lazard ETFs and current performance, you may obtain a prospectus or summary prospectus by calling 800-823-6300 or going to www.lazardassetmanagement.com. Read the prospectus or summary prospectus carefully before you invest. The prospectus and summary prospectus contain investment objectives, risks, charges, expenses, and other information about the Portfolio and Lazard ETFs that may not be detailed in this document.
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Investment Products: NOT FDIC INSURED I NOT BANK GUARANTEED I MAY LOSE VALUE
Forward looking figures represent expected returns. Expected returns do not represent a promise or guarantee of future results and are subject to change.
Market Risk: The Portfolio may incur losses due to declines in one or more markets in which it invests.
Hybrid Securities Risk: Hybrid securities are subordinate debt securities. The claims of holders of Hybrid Securities of an issuer are subordinate to those of holder of Senior debt securities in bankruptcy, and thus Hybrid Securities may be more volatile and subject to greater risk than traditional debt securities.
Contingent Convertible Securities Risk: CoCos are hybrid securities, most commonly issued by foreign financial institutions that are intended to either convert into equity or have their principal written down upon the occurrence of certain triggers. The value of CoCos is unpredictable and may be influenced by many factors including and limited to: the creditworthiness of the issuer, supply and demand for CoCos; general market conditions and available liquidity; economic, financial and political events that affect the issuers, its particular market or the financial markets in general.
Fixed-Income and Debt Securities Risk: The market value of a debt security may decline due to general market conditions that are not specific ally related to a particular company, such as real or perceived adverse economic conditions, changes in the outlook for corporate earnings, changes in interest rates or adverse investor sentiment generally.
Interest Rate Risk: Prices of bonds and other debt securities tend to move inversely with the changes in interest rates.
Limited Operating History Risk: Prospective investors do not have a track record or history on which to base their investment decisions