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Open in new tab Catastrophe bonds (cat bonds) were the best-performing alternative asset class in 2023, with a 20% return. Despite predictions of an intense hurricane season, interest remains high due to their robust returns. These bonds help insurers hedge against natural disasters, offering investors high yields if damages stay below set thresholds. Brookmont Capital Management is set to launch the first ETF focused on cat bonds, aiming for a September 25th debut. This actively managed fund will invest at least 80% of its assets in cat bonds and related securities. “You can’t really understand finance unless you fundamentally understand it’s a discipline for measuring risk and the returns on risk,” says Robert Hartwig. The ETF aims to simplify access to cat bonds, which traditionally required navigating mutual funds or private accounts. Read more from the article here.