Growth in the Fixed Income ETF Landscape

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.

Related: Antares Fixed Income Manager Discusses Current Volatility

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

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