The first quarter was a trying period for fixed income investors. Some passive bond strategies disappointed market participants at the very time the asset class should have delivered on the promise of protection.
Advisors and investors typically embrace bonds for two primary reasons: income and portfolio protection in the event equities decline. Regarding the latter point, that's another way of saying diversification.
In the world of ETFs, actively managed fixed income is undoubtedly one of the fastest-growing segments. Indeed, the union of the ETF wrapper and bonds breathes fresh life into active management.
The Federal Reserve disappointed many market participants when it didn't lower interest rates last month and President Trump recently named a successor to Jerome Powell. Suffice to say, there's a lot going on at the central bank.
Investors relying on passive bond index funds may find their portfolios too rigid to handle 2026's uncertain interest rate environment, according to Morningstar's latest 2026 market outlook.
An actively managed bond fund from SS&C ALPS Advisors has attracted close to $1 billion in net inflows over the past year as investors position portfolios for an environment where security selection could provide an advantage over passive index tracking.
The marriage of active management and fixed income ETFs is garnering increasing attention. Rightfully so: the bond ETF wrapper is seen as breathing new life (and assets) into actively managed products.
What does the future hold for fixed income? 2025 has offered some very unique factors to consider with the Federal Reserve pressured to cut rates.
Between Moody's recent downgrade of the U.S. credit rating and the specter of significant deficit spending in the president's “big, beautiful bill,” among other factors, there's an unusual amount of headline risk currently confounding the bond market.
One of the primary reasons investors allocate to bonds is to smooth out volatility attributable to equities. But they also do because fixed income instruments are gemerally suitable for long-term holding periods.
There are fears the U.S. economy could slip into a recession. So advisors and investors are revisiting the defensive attributes offered by high-quality bonds.
As active ETFs' role in the asset management landscape continues to grow, active fixed income ETFs in particular have gathered significant new interest. That has led to new launches and significant new AUM growth.