Popular ETF Strategy Shift Could Benefit Investors

Advantages of active management

With Wall Street nervousness growing over the number of rate hikes to come, VettaFi’s Todd Rosenbluth sees signs of a return in managed fixed-income exchange-traded funds and steers clear. passive ETF products.

“It’s unclear how quickly the Fed will decelerate and how quickly that will correct the market,” the company’s head of research told to ETF” this week.” So, [investors] want to rely on active managers to be able to do that.”

Top ETF providers like BlackRock’s iShares and Vanguard, and newer players like Morgan Stanley and Capital Group, are saturating the market with a range of fixed-income ETFs, Rosenbluth said.

“We just had more products,” he said. “You’ve got two of the top fixed-income ETF providers offering some of the biggest products. And they can balance their portfolio swings by stretching over longer periods of time. or get more or less credit based on the environment they’re seeing.”

According to Rosenbluth, this flexibility is appealing to investors by offering more opportunities to leverage active ETFs.

‘A stock-like experience through an ETF’


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