A niche? Hey, almost everyone has one. So why not fixed income ETFs – non-core fixed income, especially, which “play an expanded role in portfolio construction” for institutional investors, according to the results of a survey conducted by State Street Global Advisors, reported etfdb.com.

According to the report, The Role of ETFs in a New Fixed Income Landscape, of the 700 global institutional investors SSGA surveyed with an eye on upping their exposure to high-yield corporate debt over the next 12 months, 62% likely will do so through ETFs. In contrast, only 27% of investors significantly tapped into ETFs to build their allocations to non core fixed income like high yield last year.

“The increase from just over a year ago is remarkable,” the report said.

Among larger institutions, well, the momentum especially reverberates, according to etftrends.com. Sixty eight percent of respondents generating more than $10 billion in assets indicated they’re likely to leverage ETFs to erect new exposures to high yield corporate credit.

“Our conversations with investors have reinforced what we already knew – there is significant demand for more targeted fixed income products,” said Tony Kelly, an ETF industry leader. “Our initial product suites aim to create a full toolkit for high-yield investors looking to implement their specific views on the market, and we anticipate extending this approach to other fixed income asset classes.”

Yields on developed market government bonds have been soaring this year, as a result of higher inflation, sharp rate hikes, and quantitative tightening. The latter of which is what has traders nervous right now. The Federal Reserve is looking to increase the pace of winding down its nearly $9 trillion balance sheet, while the European Central Bank has also been looking to shrink its €5 trillion bond portfolio. Central banks built up their balance sheets with bond purchases to help provide a stimulus for the economy, but with the current high inflation, banks are now looking to sell those bonds. With the bond market already facing pressure due to the rate hikes, further quantitative tightening could make trading even more difficult by worsening liquidity and increasing volatility. The Bank of England has already been forced to delay its quantitative tightening due to turmoil in the UK bond market. That turmoil, which also spread to the U.S. and European bond markets, has only added to the liquidity and volatility concerns.

Finsum:An increase in Quantitative Tightening by central banks could lead to more volatility in the bond markets.

Innovator Capital Management recently launched its new Research & Investment Strategy hub containing model portfolios. The new site was built to provide advisors with a framework on how to construct portfolios with Defined Outcome ETFs. The site also provides market and economic data, and analysis and commentary with a focus on managing risk. Innovator’s Strategic Defined Outcome ETF Portfolios are designed to target varying levels of risk and return across the risk-reward spectrum. There will be five portfolios to start. This includes a Conservative model, a Balanced Alternative model, an All-World Hedged Equity model, a Controlled Growth model, and an Accelerated Growth. All the portfolios will consist of ETFs from Innovator’s Defined Outcome ETF lineup. The lineup, which has so far amassed over $8.8 billion in assets under management, includes Buffer ETFs, Accelerated & Stacker ETFs, and Floor ETFs. The Defined Outcome ETF portfolios will be free and rebalanced annually. An advisor can construct portfolios with custom allocations to specific Defined Outcome ETFs and then analyze the custom portfolio’s return and risk characteristics.

Finsum:Innovator Capital has launched a series of model portfolios allowing advisors to construct custom portfolios using the firm’s Defined Outcome ETFs.

According to retirement industry experts, the new DOL Fiduciary Rule is not expected to be released until the first quarter of 2023 due to two ongoing and related legal cases. The rule, which aims to create a universal fiduciary guidance standard for financial professionals, was previously expected to be released in December. The original Fiduciary Rule proposed under the Obama administration, was overturned by the Fifth Circuit Court of Appeals in New Orleans citing that the DOL's execution of the rule amounted to "an arbitrary and capricious use of regulatory power." Under the Trump presidency, the DOL released PTE 2020-02 in December 2020, allowing investment advice fiduciaries to receive payment in connection with rendering fiduciary investment advice. The Biden administration allowed that regulation to proceed and was expected to be published next month. However, the Federation of Americans for Consumer Choice (FACC) filed a lawsuit in federal court in Dallas claiming that the DOL does not have the jurisdiction to enlarge the list of advisors who are required to serve as fiduciaries for pension savings. Another lawsuit was filed by The American Securities Association in a federal court in Florida arguing that the rule breached the regulations requiring a period of public input.

Finsum:The release of the new Fiduciary Rule is facing additional delays as the DOL fights two separate, but related lawsuits.

Okay, sure, there’s the old adage: age is just a…..well, you know where it’s going.

That said, what’s the ideal age to pluck down cash on an annuity?

How about this for a little calculus: the age at which you invest in an annuity, coupled with your life expectancy, determines how much money you pocket from this monthly income over the course of your life, according to annuity.org. Your personal lifestyle, financial position and goals pinpoint the ideal age to invest in an annuity.

“It really kind of depends on the annuity investor, but I’d say that sweet spot is anywhere from 45 to 70 years old,” Joe Liekweg, a licensed agent at Insuractive told Annuity.org.

Most financial advisors are on the same page: 70-75 is the idyllic age to buy a fixed income annuity to get the biggest bang out of your payments while sidestepping tying an overabundance of your savings into the annuity, according to entrepreneur.com

According to annuity.org, among questions to bear in mind prior to purchasing an annuity:

1. When Will You Need the Money?
2. How Much Will It Cost?
3. What’s Your Life Expectancy?
4. What Are Your Risks?
5. Will the Annuity Work Well With Your Other Income?