By Todd Shriber via Iris.xyz
Despite the Federal Reserve’s four interest rate increases in 2018, investors remained fond of fixed income exchange traded funds (ETFs). Overall, US-listed ETFs hauled in $313 billion in new capital, good for the second-best annual tally ever behind only 2017.
Bond ETFs added $97 billion in new assets, or 31 percent of last year’s total ETF inflows, according to CFRA Research. Investors continue warming to actively managed fixed income ETFs. Last year, active bond ETFs hauled in $21 billion in new money, equal to the total inflows to active bond ETFs in the previous three years combined, notes CFRA.
All that while the venerable Bloomberg Barclays US Aggregate Bond Index was flat last year. Speaking of actively managed bond ETFs and the Bloomberg Barclays US Aggregate Bond Index, the newly minted (and actively managed) JPMorgan U.S. Aggregate Bond ETF (JAGG) aims to have a similar risk profile to the “Agg” while providing a credible alternative to traditional, passive aggregate bond funds.
The JPMorgan U.S. Aggregate Bond ETF (JAGG) can include corporate bonds, mortgage-backed securities, Treasuries and other agency debt, among other fixed income assets.
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