The current market environment is getting more conducive to bonds. Investors are taking a look at bond exchange traded funds (ETFs) again. One option is getting actively managed fund exposure — a topic of discussion at the forthcoming VettaFi Fixed Income Symposium on July 24.
The symposium is a webcast that brings the brightest minds in the capital markets sphere together to discuss fixed income options. With a bond ETF market that stands at over $2 trillion, there’s certainly much to discuss along with active ETF exposure.
“For years, advisors turned to active management for fixed income through the mutual fund wrapper,” VettaFi noted on the event site. “But now there are many popular active fixed income ETFs.”
The ETF landscape has gotten more competitive, especially with more bond products coming to the market. Additionally, the cost of active management has been trending lower as of late. This allows investors to reconsider the strategy alongside passive funds.
Active bond ETFs allow investors to get exposure to a dynamic market that can be daunting and therefore requires the help of an experienced portfolio manager. Active ETFs eliminate the guesswork of choosing bonds to build a portfolio, depending on the investor’s fixed income goals.
Register here to attend the Fixed Income Symposium and take the pulse of the ever-changing bond ETF market.
2 Active Options Worth Considering
Investors looking to get active bond ETF exposure can look to a pair of options from American Century. For core exposure, consider the Avantis Core Fixed Income ETF (AVIG).
As its name explicitly notes, AVIG offers core bond exposure. It invests in a broad array of debt across various sectors, maturities, and issuers. It’s an ideal fund for the fixed income investor seeking diversification with the dynamic strategy of active management inherent in one ETF.
In the current rate environment, short-term bonds have been a prime option, which is why the American Century Short Duration Strategic Income ETF (SDSI) is worthy of consideration.
SDSI also uses active management to locate and hand-pick short-term bond holdings to mitigate further rate risk. The strategy will seek to generate attractive yield. It will do so by investing across multiple fixed income market segments, which maintain a short-duration focus.
SDSI is also well diversified, investing across a broad array of debt. This includes corporate bonds and notes, government securities, and securities backed by mortgages or other assets. As mentioned, the active management allows fund managers to maintain pliability in the current fixed income environment. This allows for changes to holdings on the fly if market conditions warrant an adjustment.
The replay of the Fixed Income Symposium is now live; registration to view on-demand is available at the link.
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