AdvisorShares, a developer and distributor of ETFs, registered a prospectus with the Securities and Exchange Commission last Friday to launch an actively managed high-yield debt ETF with Peritus Asset Management, the first product rollout since the two firms announced a partnership on Feb. 18.

The Peritus High Yield ETF (NYSEArca: HYLD) will invest in senior and subordinated corporate debt and loans that hold the promise of generating relatively high current income as well as capital appreciation. HYLD might also own futures and options to hedge against interest rate risk.

High-yield debt—as measured by the BarCap High Yield Total Return Index—has risen 62.7 percent since the March 2009 stock market low, and remains relatively attractive amid looming interest rate increases by the Federal Reserve.

Peritus, a Santa Barbara, Calif.-based registered investment adviser, specializes in high-yield debt chosen with a view on cash flow as opposed to ratings. Peritus will develop all AdvisorShares ETFs in the future, the companies said in a statement.

HYLD will have 40 to 60 holdings in multiple industries that have attractive valuations in the secondary credit market, the companies said. The fund won’t have maturity limitations.

AdvisorShares serves as the adviser for the fund. The Maryland-based company also manages the DENT Tactical ETF (NYSEArca: DENT).

SEC approval of an ETF prospectus is required before a fund can launch.