The nine most-popular ETFs in November by net flows provide a range of exposures as investors look to opportunities in various segments of the market.
FBND has provided superior risk-adjusted returns through dynamic allocation between investment-grade and junk bonds. Despite active management, the fund maintains a conservative risk profile with 36.12% in U.S. government bonds and only 10.10% in junk bonds. The ETF has consistently outperformed the Vanguard Total Bond Market ETF (BND) in both price performance and total returns, showcasing effective active management.
In mid-November, Fidelity Investments joined the select ‘$100 billion in ETF assets' club. While the firm still has a sizable presence in the mutual fund world, Fidelity's ETFs have been gaining traction in 2024.
Fidelity Total Bond ETF (FBND) offers exposure to more conservative fixed-income instruments, with a meaningful weight in U.S. Treasuries. FBND is primarily an intermediate-term fixed-income fund with a duration of 6 years, which should benefit from a lower rate environment. We compare several funds to FBND today and try to lay out the case for each under different situations going forward.
The second half of 2024 appears increasingly favorable for actively managed bond ETFs. Michael Plage, CFA, portfolio manager at Fidelity Investments, talked active fixed income investing in the Third Quarter Fixed Income Symposium hosted on the VettaFi platform.