“So you’re only talking about 4% ownership or 4% position of ETFs in that market, which I think is actually fairly reasonable,” Tucker said.
With interest rates as low as they are now, chances are that interest rates will sooner or later begin to shift upward, but interest in fixed-income ETFs will remain. For instance, Tucker points to the aging population and the desire to keep fixed-income assets toward retirement; fixed-income investors are becoming more globally minded, using ETFs to access international debt; lastly, investors are seeing fixed-income ETFs as a true institutional instrument for accessing fixed-income.
“And so really, when I think about these three trends, I think that these are the longer-term structural changes in the fixed-income market,” he added.
For more information on fixed-income assets, visit our bond ETFs category.
Max Chen contributed to this article.