It's Time To Rethink Fixed Income With ETFs

Exchange-traded products focusing on fixed-income assets can overcome the largest challenges facing today’s bond markets.

- Brett Olson

It the role of fixed income in multi-asset portfolios is evolving with the unprecedented levels of market volatility we have seen this year, and it is hard to think of a better time to rethink fixed income. In today’s fixed-income markets, investors face increasing pressure to deliver returns, generate yield and maintain diversification. To do so, we believe there is a need to move beyond the outdated “active first and only” fixed-income approach and consider indexing and fixed-income ETFs. The best way to understand just why ETFs are suitable is to consider how they can help address the main challenges in today’s bond markets. We see four big challenges.

Resilience through diversification