4. Check out mortgage-backed securities. We are currently overweight the MBS sector as rates begin to stabilize and suggest the iShares MBS ETF (MBB) or the iShares BNMA Bond ETF (GNMA).
5. Revisit emerging markets. As valuations improve, we are neutral emerging market bonds and believe they provide a good way to incorporate further diversification into a U.S. fixed portfolio. For this strategy, consider the iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB).
For a closer look at ETP (exchange traded product) flow trends by sector, including equities, fixed income, commodities, volatility and currency, as well as by asset class, click here or on the image below.
For more, check out the latest ETP Flows Quarterly Report from the BlackRock Investment Institute.
Dodd Kittsley, CFA, is the Head of Global ETP Market Trends Research for BlackRock and a regulator contributor to the The Blog. You can find more of his posts here.