Investors can also quickly move in and out of fixed-income positions with ETFs, reacting to changing market conditions. Since the ETFs are traded like stocks on an exchange, the average retail investor is able to build a position faster and easier than in using the underlying fixed-income securities.

Additionally, due to their structure, ETFs come with very low fees.

“The cheapness and ease of use make ETFs a very appropriate tool for a multi-asset manager who wants to make money from a short-term tactical asset allocation,” Siu Kee Chan, senior investment manager at ING Investment Management, said in the article.

For more information on ETFs, visit our ETF 101 category.

Max Chen contributed to this article.