While the Federal Reserve has pushed off interest rate hikes, exchange traded fund investors should begin thinking about ways to position their fixed-income portfolios to navigate more turbulent conditions.
On the upcoming webcast, Dynamic Fixed Income Strategies for 2016, David Mazza, Managing Director and Head of ETF & Mutual Fund Research at State Street Global Advisors, Tim Anderson, Chief Fixed Income Officer of the RiverFront Investment Group, and K. Sean Clark, Chief Investment Officer of Clark Capital Management Group, will help outline some ETF strategists’ positioning ahead of a shifting fixed-income environment and potential opportunities in specific segments of the market.
Most financial advisor and investor fixed-income portfolios are based on the Barclays U.S. Aggregate Bond Index. However, the benchmark leaves most investors heavy on U.S. Treasury bond exposure. Moreover, investors may be missing out opportunities in municipal bonds and Treasury inflation protected securities as the Aggregate Bond Index does not include either categories.
Municipal bonds have been among the better performing fixed-income assets over recent years as investors jumped on the debt securities’ favorable tax treatment. TIPS have recently gained momentum as traders try to position ahead of rising inflation.
The ETF Strategists will help clarify what it means to invest in fixed-income assets during a rising rate environment, dispelling any misconceptions that have left financial advisors hesitant to deploy capital. Investors who are interested in hearing more about ETF Strategists recommendations may also visit the ETF Strategist Channel on ETF Trends.
ETF managed portfolios are a quickly growing part of the separate accounts space. Fueling demand for ETF managed portfolios, clients are actively asking multi-asset managers to increase ETF allocations in their portfolios. Managers are also expanding their investment base with ETFs to meet specific goals. More active managers are also adopting ETFs due to the many benefits of the investment vehicle, such as low fees, deep liquidity, tax efficiency and as replacements for futures and to access broad asset classes.
[related_stories]ETF managed portfolios are investment strategies that hold more than 50% of assets invested in ETFs and managed by ETF strategists. Specifically, ETF managed portfolios offer three major investment themes: tactical, strategic and hybrid mix. The tactical offerings provide short-term plays to capitalize on investment opportunities that are forming, whereas the strategic play provides long-term allocation across sectors and asset classes. Additionally, the hybrid mix includes a combination of tactical and strategic elements.
According to Morningstar data, there were 755 strategist from 154 firms with $73 billion in assets under management through December 2015.
Financial advisors whoa re interested in learning more about ETF strategists’ fixed-income strategies can register for the Wednesday, April 6 webcast here.