Demand for U.S.-listed actively managed fixed income ETFs remains robust, following the Fed's renewed rate cutting program. YTD through November 7, active fixed income ETFs have gathered $147 billion in net inflows.
With all the talk about inflation returning, advisors are keeping a close eye on how the Federal Reserve may respond. On Wednesday, the Federal Reserve opted to keep interest rates at the same position they have been in since December.
While some experts were betting on economic uncertainty affecting 2025's stock market, things have played out a bit more drastically. Escalating tariff threats and the potential for a recession have sent many investors running for cover.
Even though many fixed income strategies are seeing good results, some investors remain uncertain over where bond yields are heading. Luckily for the uncertain, evidence is mounting that the yield curve is normalizing.
Right now, bond investors have probably noticed that yield spreads are currently in a fairly tight position. Sure, these spreads can benefit investors who prefer investment grade bonds, but high yield strategies may offer less benefits now.
The new year may have only just begun, but the bond market is already beginning to face some potential headwinds. CNBC recently reported that about $3 trillion of U.S. debt is slated to hit maturity this year.
For years, fixed income investors have relied on the Bloomberg US Aggregate Bond Index, also known as the Agg, as a barometer for the U.S. bond market. There's certainly nothing wrong with focusing on the Agg.
There is a significant shift from mutual funds to ETFs, driven by the need for more liquid and actively traded investment vehicles. Morgan Stanley converted two fixed-income mutual funds into ETFs, enhancing its ETF offerings to 14 since last year. The Eaton Vance Total Return Bond ETF offers a 5% yield with a strong credit profile, primarily holding MBS, IG Corporate credit, and Treasuries.
As indicators mount in favor of inflation easing, investors are left wondering: where does this leave their fixed income strategies? Recent insights from the Eaton Vance team highlight a number of fixed income opportunities investors could capitalize on.
The recent spouts of market volatility may have highlighted more than just recession concerns. In the latest edition of “The BEAT,” experts at Natixis broke down what the volatility risks may mean for the market.
A robust second-quarter GDP reading sent 10-year Treasury yields falling as investors look to the long term. For those investors looking to add duration, the Eaton Vance Total Return Bond ETF (EVTR) offers notable performance this year.
The current macroenvironment is offering fixed income investors a plethora of options, especially when it comes to attaining yield. However, the Eaton Vance Total Return Bond ETF (EVTR) should be on their radar, especially if they're looking for core exposure in an active fund at a relatively low cost.