Looking for a global, active fixed income ETF? In a year defined by a return to form for fixed income investing, many investors are looking for fixed income opportunities. While investors know the big, indexed bond strategies by now, an active fixed income strategy can offer different benefits. The RiverFront Strategic Income Fund (RIGS) will hit its tenth birthday next month. That may invite investors to take a closer look at its global, active approach to fixed income.
Why look to an active fixed income ETF now? Active strategies can navigate uncertain markets much more ably than their passive counterparts. Whether on a weekly, daily, or even intraday basis, experienced managers of active strategies can help their funds adapt quickly. What’s more, active fixed income strategies can also lean on various factor screens to fine-tune their debt portfolios. That specifically could help with opportunities in fixed income only matched in scale by uncertainty.
U.S.-based fixed income investors particularly may be intrigued by a global fixed income allocation. An active strategy, like RIGS, with such a view could provide the most appealing opportunities in U.S. debt as well as European and Asian securities. That freedom allows RIGS’ managers to invest in the options they like most in overall categories, finding the most attractive high yield, corporate, or even government bonds around the world rather than just in the U.S.
RIGS will hit its tenth birthday on October 7, just a few weeks away. The ETF can invest in fixed income securities from any issuer, credit rating, nation, or maturity. It does, however, prefer maturities of two to 10 years. Charging 46 basis points (bps), the active fixed income ETF has outperformed its FactSet Segment Average over the last year and five-year periods. For investors looking to diversify their passive bond holdings with an active fund, RIGS may be one to watch.