May 04, 2024
Fixed Income ETFs: From Evolution to Revolution
— The growth of Fixed Income ETFs is unstoppable. They have become an
integral part of modern and efficient portfolio construction. The
continued evolution of the ETF ecosystem has led to their emergence as a
dependable anchor for allocations, driven by simplicity, diversification
and reliability.
— Granularity is becoming increasingly important. Fixed Income ETFs are
poised for a more dynamic chapter, as fixed income yields are back and
remain volatile. This opens up new tactical and strategic allocation
solutions that have long been out of sight. ETFs will solve essential
challenges along yield curves and make opportunities in credit
investable.
— This revolutionises the role Fixed Income ETFs play in asset allocation.
The increasing depth and breadth of fixed income in portfolios also
brings diversification considerations back on the agenda.