As fixed-income investors contend with a quickly changing market environment, people should consider allocating toward smart beta or factor based bond exchange traded funds that could better diversify and potentially enhance returns ahead.
For example, the IQ Enhanced Core Bond U.S. ETF (NYSEArca: AGGE) and the IQ Enhanced Core Plus Bond U.S. ETF (NYSEArca: AGGP) incorporates momentum factors to direct investors toward strengthening fixed-income segments in an attempt to enhance returns.
“We are leaders in fixed-income factor investing, providing opportunities in asset classes to potentially enhance returns in current and future environments,” Sal Bruno, Chief Investment Officer IndexIQ, told ETF Trends in a call.
One way to help investors find the best opportunities in the fixed-income market is through momentum investing, Bruno explained.