Why Fixed-Income ETFs Are So Hot??Right Now With recent rate cuts, fixed-income ETFs have been drawing significant attention as investors seek attractive yields and effective portfolio diversification. In a recent episode of ETF Spotlight, Neena Mishra, CFA, FRM, Director of ETF Research at Zacks Investment Research, spoke with Dhruv Nagrath, CFA, Director of Fixed-Income Strategy at BlackRock, to discuss the growing appeal of bond ETFs. https://lnkd.in/g9rkjfAV Key takeaways: ?? Bond ETFs are serving as strong cushions against stock market volatility, with inflows surpassing $220 billion this year. ?? The appeal of higher yields and the role of bonds in diversifying portfolios have made these products a compelling choice, especially in times of?economic uncertainty. ?? Investors are looking beyond traditional cash positions, taking advantage of fixed-income strategies that lock in favorable yields. “There is still about $6.5 trillion sitting in money market funds. Dhruv explains why investors should consider pulling cash out of money market funds and locking in highly attractive yields with bond ETFs. U.S.-listed fixed-income ETFs have taken in more than $220 billion year-to-date, as bonds not only offer high income but have also resumed their traditional role as a portfolio diversifier. In fact, bonds have served as strong cushions against stock market volatility in recent months. However, many investors remain significantly underweight in fixed income.” At Sound Income Strategies, we see the growing interest in fixed income as a validation of our commitment to providing diversified, income-focused solutions for advisors and investors. It’s clear that fixed income strategies remain a critical component of a well-rounded portfolio, and we’re proud to offer options that help clients navigate this evolving market landscape.
