OppenheimerFunds’ Dave Mazza, Head of ETF Investment Strategy, and Mo Haghbin, Head of Research & Development, Beta Solutions, discussed the rapid growth of fixed income ETFs.
Notable points covered in the discussion:
- Overview of the fixed income landscape and its history
- Roughly 300 fixed income ETFs and nearly 600 billion in assets in the U.S.
- Intermediate term bonds, corporate bonds and short-term bonds is where the majority of investors are flocking
- Divergence in intermediate term bonds, corporate bonds and short-term bonds
- Money is till being moved into investment-grade corporate bonds and moving out of high-yield
- Investors could be possibly pricing in interest rate risk
- Focusing on the underlying securities in a fixed income ETF, particularly during a rising rate environment
- An ETF is just as liquid as its underlying bonds
- Exchange-traded platform increases price transparency in the fixed income market
- How clients are incorporating fixed income into their portfolios
- Fixed income ETF use started very tactically, but now it is more strategic
- Investors are increasingly using ETFs for trading efficiency and core holdings
To watch the full video, click below:
For more fixed income investment solutions, visit the Fixed Income Channel.