Navigating Fixed Income Markets: Market Update and Outlook

With easy monetary policies coming to an end, bond investors will have to take a hard look at how they will meet the challenges ahead. Savvy investors are re-evaluating all of their “core” holdings for this upcoming new normal.

In the upcoming webcast, Navigating Fixed Income Markets: Market Update and Outlook, T. Rowe Price’s head of fixed income, Andrew McCormick, and head of exchange traded funds, Timothy Coyne, will provide an outlook on the fixed income markets, explain how active management may be better suited than traditional indexing, and examine strategies that can help investors better diversify in any type of market environment.

T. Rowe Price recently announced the addition of three new fixed income exchange traded funds (ETFs) to its actively managed ETF suite, including the T. Rowe Price Total Return ETF (TOTR), the T. Rowe Price Ultra Short-Term Bond ETF (TBUX), and the T. Rowe Price QM U.S. Bond ETF (TAGG).

The new ETFs were selected as core fixed income strategies that can serve as building blocks to a client portfolio. Each will be managed by the same investment team and processes as the existing mutual fund versions with similar strategies, utilizing the firm’s long-standing strategic investing approach, characterized by rigorous research, risk awareness, and independent decision making.

The firm’s lineup of active ETFs complements its traditional mutual fund offerings and delivers key features typically associated with ETFs that some investors may prefer, including continuous daily trading, real-time market-determined pricing, and tax efficiency.

TAGG seeks to provide a total return that exceeds the performance of the U.S. investment-grade bond market. It uses its modest tracking error budget to seek to outperform the Bloomberg U.S. Aggregate Bond Index on a net of fee basis. The fund is managed by Robert Larkins, who has 18 years of investment experience, all at T. Rowe Price. TAGG has a net expense ratio of 0.08%.

TOTR seeks to maximize total return through income and, secondarily, capital appreciation. It combines all-weather portfolio construction techniques with tactical market insights to generate income and attractive risk-adjusted returns across market cycles. The fund is co-managed by Chris Brown, who has 21 years of investment experience, 16 of which have been at T. Rowe Price, and Anna Dreyer, who has 12 years of investment experience, all at T. Rowe Price. TOTR has a net expense ratio of 0.31%.

TBUX seeks a high level of income consistent with low volatility of principal value. It intends to provide a high level of income while minimizing principal volatility by using a broadly diversified portfolio composed of shorter-term government, investment-grade corporate, and securitized bonds. The fund is managed by Alex Obaza, who has 16 years of investment experience, 13 of which have been at T. Rowe Price. TBUX has a net expense ratio of 0.17%.

Financial advisors who are interested in learning more about fixed income markets can register for the Thursday, November 11 webcast here.