For actively managed ETFs, 2024 was a record year of asset gathering. And the good times may keep going this year.
There have been recent increases by 10-year Treasury yields. And there's been talk that the Federal Reserve will tread cautiously this year regarding interest rate cuts.
Last year was a decent one for muni bonds and related exchange traded funds. The Federal Reserve unveiling its first interest rate cuts in four years helped the cause.
It's hard to see the words “municipal bonds” and get excited, but times may be changing. With fixed income wrapping up a strong year, many investors may also be looking to refresh portfolios and adjust for tax impacts ahead of 2025.
Advisors and investors evaluating areas of 2025 opportunity in the fixed income market might do well to consider muni bonds and the related ETFs. That thesis could be bolstered with the benefits of active management, accessible via the ALPS Intermediate Municipal Bond ETF (MNBD).
2025 is right around the corner. Advisors and investors are evaluating which asset classes could deliver the goods in the new year.
Since the birth of the U.S. ETF industry in 1993, actively managed mutual funds have bled $5 trillion in assets, per recent analysis by BofA. Much of that shift has benefited ETFs as advisors and investors gravitated to passive products with lower fees.
The October jobs report, released last Friday, coupled with more downward revisions to monthly employment numbers, spooked some market participants. It also reignited talk about a looming recession.
It's not yet clear who will occupy the White House in 2025. It's also not known what the makeup of the two chambers of Congress will look like.
Municipal bonds and related ETFs aren't the most adventurous fixed income assets. That's usually why income investors, including retirees, embrace the asset class.
The Federal Reserve nearing its first interest rate cut since 2020. So enthusiasm for fixed income assets is increasing, and muni bonds are part of that trend.
It appears probable that the U.S. economy will avert a recession. Additionally, it's increasingly likely the Federal Reserve will soon lower interest rates to juice economic activity.