Looking to Active Bond ETFs in a Changing Environment

After a three-decade long bull run in the fixed-income market, the Federal Reserve is eyeing interest rate hikes and yields are beginning to inch higher. Fixed-income investors, though, can rely on actively managed bond exchange traded funds that are better able to adapt to changing conditions to mitigate risks and capture areas of value.

ETF Trends publisher Tom Lydon spoke with David Mann, Head of Global ETF Markets at Franklin Templeton, at the Inside ETFs conference that ran Jan. 22-25, 2017 to talk the rise of active fixed-income ETF strategies as investors and advisors look beyond traditional passive index-based funds.

“It is important to have an active portfolio manager looking at how to manage duration and what, you know, when you start getting overweight certain sectors or issuances,” Mann said.