Columbia Diversified Fixed Income Allocation ETF (DIAL) Increases Momentum, Surpasses $1 Billion in Assets

Columbia Threadneedle Investments today announced that assets in the Columbia Diversified Fixed Income Allocation ETF (NYSE Arca: DIAL), the industry’s first strategic beta multi-sector fixed income ETF, have surpassed $1 billion.

Launched on October 12, 2017, DIAL is based on the conviction that few available benchmark-based ETFs appropriately address investors’ fixed income needs around yield, quality and liquidity. DIAL has attracted more than $500 million of net new inflows in the past six months following its three-year anniversary in October 2020. Since inception, the fund has garnered 47% of industry strategic beta fixed income inflows.

“When we launched DIAL, we wanted to address the growing demand for cost-efficient, multi-sector fixed income investing. We knew we could rely on our portfolio management teams to create a thoughtfully calibrated approach,” said Marc Zeitoun, Head of Strategic Beta and COO of North America Distribution for Columbia Threadneedle Investments. “We are very proud of this AUM milestone, which further underscores investors’ and advisors’ continued appetite for better passive options beyond pure benchmark products.”

DIAL tracks the Beta Advantage® Multi-Sector Bond Index, which, as of March 31, 2021, had an annualized one-year return of 9.64% and an annualized return of 4.97% since inception (September 1, 2017), compared to the Bloomberg Barclays US Aggregate Bond Index, which had an annualized return of 0.71% and 3.47% respectively. The index reflects a rules-based approach to help investors pursue consistent income, regardless of the interest rate environment. Offered with an expense ratio of 28 basis points, DIAL is a low-cost solution that provides investors with a diversified portfolio of fixed income securities across six sectors and is designed to serve as a core fixed income allocation focused on balancing yield, quality and liquidity. These sectors include U.S. Treasuries, global ex-U.S. treasuries, U.S. investment-grade corporate bonds, U.S. mortgage-backed securities, U.S. high-yield corporate bonds and emerging markets sovereign debt.

About Columbia Threadneedle Investments

Columbia Threadneedle Investments is a leading global asset manager that provides a broad range of investment strategies and solutions for individual, institutional and corporate clients around the world. With more than 2,000 people, including over 450 investment professionals based in North America, Europe and Asia, we manage $564 billion1 of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.

Columbia Threadneedle Investments is the global asset management group of Ameriprise Financial, Inc. (NYSE: AMP). For more information, please visit Follow us on Twitter.

Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.

1As of March 31, 2021. Includes all assets managed by entities in the Columbia and Threadneedle group of companies.

Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor‘s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 888.800.4347.

Carefully consider the fund‘s investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the fund’s prospectus, which may be obtained by calling 888.800.4347 or by visiting the fund‘s website to view or download a prospectus. Read the prospectus carefully before investing. Investing involves risks, including possible loss of principal.

Investment Risks

Fixed income securities Involve interest rate, credit, inflation, illiquidity and reinvestment risks. Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. Generally, the value of debt securities falls as interest rates rise. Fixed income securities differ in their sensitivities to changes in interest rates. Fixed income securities with longer effective durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter effective durations. Effective duration is determined by a number of factors including coupon rate, whether the coupon is fixed or floating, time to maturity, call or put features, and various repayment features. Below investment-grade securities, or “junk bonds,” are more likely to pose a credit risk, as the issuers of these securities are more likely to have problems making interest and principal payments than issuers of higher-rated securities. Lower-rated securities may be more susceptible to real or perceived adverse economic and competitive industry conditions than higher-grade securities, and prices of these securities may be more sensitive to adverse economic downturns or individual corporate developments. If the issuer of the securities defaults, the ETF may incur additional expenses to seek recovery. Generally, rising interest rates tend to extend the duration of fixed rate mortgage-related securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, if the ETF holds mortgage-related securities, it may exhibit additional volatility. In addition, adjustable and fixed rate mortgage-related securities are subject to prepayment risk. The fund is passively managed and seeks to track the performance of an index. The fund’s use of a “representative sampling” approach in seeking to track the performance of its index (investing in only some of the components of the index that collectively are believed to have an investment profile similar to that of the index) may not allow the fund to track its index with the same degree of accuracy as would an investment vehicle replicating the entire Index. In addition to the multi-sector bond strategies employed, the fund may invest in other securities, including private placements. The Fund may have portfolio turnover, which may cause an adverse cost impact. There may be additional portfolio turnover risk as active market trading of the fund’s shares may cause more frequent creation or redemption activities that could, in certain circumstances, increase the number of portfolio transactions as well as tracking error to the Index and as high levels of transactions increase brokerage and other transaction costs and may result in increased taxable capital gains. Foreign currency risks involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume.

ETF shares are bought and sold at market price (not NAV) and are not individually redeemable. Investors buy and sell shares on a secondary market. Shares may trade at a premium or discount to the NAV. Only market makers or "authorized participants" may trade directly with the Fund(s), typically in blocks of 50,000 shares.

The Beta Advantage® Multi-Sector Bond Index is a rules-based multi-sector strategic beta approach to measuring the performance of the debt market through representation of six sectors, each focused on yield, quality and liquidity of the particular eligible universe. The index will have exposure to the following six sectors of the debt market: U.S. Treasury securities; global ex-U.S. treasury securities; U.S. agency mortgage-backed securities; U.S. corporate investment-grade bonds; U.S. corporate high-yield bonds; and emerging markets sovereign debt. It is not possible to invest directly in an index.

The Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency). It is not possible to invest directly in an index.

Columbia Management Investment Advisers, LLC serves as the investment manager to the ETFs. The ETFs are distributed by ALPS Distributors, Inc., which is not affiliated with Columbia Management Investment Advisers, LLC or its parent company Ameriprise Financial, Inc.

© 2021 Columbia Management Investment Advisers, LLC. All rights reserved.

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