VettaFi CMO Jon Fee hosted Cole Feinberg, a BondBloxx partner, in an episode of “Road to Exchange.”
“Conferences are no longer moments in time – they’re movements,” Fee noted at the top of the video. Much like anticipation of a vacation is as much a part of the pleasure of that experience as the vacation itself, the lead up to an event is a critical part of it. As the financial services community gears up to gathering in Miami Beach on February 11th through 14th, there’s an opportunity for advisors to begin making the connections that they can solidify in person at the event itself.
Top of Mind for Advisors
Asked what is top of mind for advisors in the lead up to Exchange, Feinberg observed “Two words – Fixed income.” In today’s unusual rate environment, how advisors think about the Fed’s actions and which parts of the yield curve hold the most opportunity is critical. “It is really fun to work at a place like BondBloxx where we are hyper-focused on and can really dig into those topics.”
The BondBloxx Fixed Income Toolbox
Feinberg hopes that BondBloxx can provide advisors with the fixed income tools they need. “If I’ve learned anything its ‘nobody knows an advisors portfolio better than an advisor.’” Accordingly, he shared some of the tools in the BondBloxx toolbox that advisors have been resonating with.
The first is the BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF) which offers a 6-month duration U.S. Treasury exposure. “You are getting paid nearly five and half percent,” Feinberg said. Furthermore, the fund gives a low-cost option to investors looking to work the front end of the curve. “Being low cost it really scratches a lot of itches.
The BondBloxx CCC-Rated USD High Yield Corporate Bond ETF (XCCC) gives investors exposure within high yield to exclusively triple-c rated bonds. The yield is north of 14% currently, though Feinberg notes it is more of a risk-on play. “Default rates in these companies are extremely low relative to pre-recessionary environments we’ve experienced in the past.”
The BondBloxx USD High Yield Bond Sector Rotation ETF (HYSA) is an active, high yield sector rotation fund. “What it actually owns is seven different high yield sector ETFs – all from BondBloxx as well. But it overweights and underweights the individual sectors relative to the parent benchmark.” Accordingly, he thinks of it as a smart beta high yield fund with an active component.
Advisors are Becoming More Informed than Ever
Feinberg noted that recently he had spent less time educating and talking to folks about the ETF wrapper. Previously, Feinberg shared that he spent a great deal of time educating investors about liquidity and the advantages of ETFs. Today, he noted this is less common. “Because of conferences like Exchange, I think that understanding has come a really long way.” With a broader understanding of the fundamentals, time and energy can now be focused on talking about precision, according to Feinberg.
BondBloxx will have a presence at Exchange, where advisors can learn more about the options available to them as they build the precise toolkit they need to tackle the challenges of 2024 and beyond. “We’re going to have a really strong presence. I’m excited to be there and talk to advisors.”
For more news, information, and analysis, visit VettaFi | ETF Trends.