Displaying items by tag: active management

Friday, 19 August 2022 12:12

Fixed Income Launches During Goldilocks Moment

Fixed income investors might feel lost in the current environment, but with yields starting to generate real income and prices ultra-low it might be the perfect buying opportunity. A new series of bond ETFs centered around treasuries was launched to capitalize on this unique time in the bond market. Slope Capital LLC and Genoa Asset Management LLC launched 10-year (UTEN.O), two-year (UTWO.O), and three-month (TBIL.O) dropped ETFs that will hold the most recent current Treasuries in the respective categories. Managers of the funds say this is well crafted precise tool for the fixed income investors that need a product like this. It gives new potential to bond investors in a precise way to tailor portfolios. There has been a flood into fixed income products as of late and funds are launching rapidly in response and will continue over the next half-decade.


Finsum: These tools can be utilized for investors wanting bond exposure, but not wanting to deal with the task of trading in the treasuries market and constantly updating

Published in Bonds: Total Market

Actively managed exchange-traded funds are seeing an influx of interest as investors are concerned about the escalating market volatility. Active funds are touting their advantages of weathering volatility by making better day-to-day shifts at the portfolio level. One advantage active portfolio managers have is selecting areas where they can have an edge or avoiding places with the most volatility. For instance, tech stocks are down nearly 30% depending on which index you may be looking at. Volatility is expected to continue for the near term as the Fed is projecting another 75 bps hike in the upcoming meeting and a recession is hoving over the economy like a black cloud.


Finsum: Passive ETFs may be contributing to excess volatility according to breaking financial research; it makes sense investors would turn to active funds.

Published in Economy

Jenny Johnson, CEO of Franklin Templeton, said that while times are volatile that active management ‘really pays off’. FT is one of the largest asset managers with over $1.5 trillion under management and they are one of the largest active management firms. The firm has looked to acquire firms in what they label as a ‘bolt-on’ strategy to fill in the gaps in their offerings. Their acquisitions include Legg Mason and custom indexing provider O’Shaughnessy Asset Management. They are looking mostly into technology and alternative products to tie up loose ends. Johnson cited macro headwinds like Ukraine and the Fed’s hike as large macro factors generating volatility along with Covid spikes in developing countries, but their strategies are well suited to handle volatility.


Finsum: Active fixed income has a bigger advantage in high volatility than its equity counterparts, but still it could prove to be a picker’s market. 

Published in Economy

Most fixed income ETFs used to be linked to passive tracking products in the bond market, that is until more recently. Rules Adopted by the US SEC have steered many investors to active fixed income by making it easier to launch new active ETFs. Active funds are attractive for ETF producers because they draw higher fees (about .2 percent) than active funds. This has led to an explosion in active fixed income. Active bond fund creation is growing at nearly double the rate of the rest of the ETF market, and investors are ready as well as 2021 saw a record pace of inflows. One big factor in shifting more investors into active fixed income is aging global demographics which are still searching for yield and income.


Finsum: The world’s aging population is creating a safe asset shortage and pushing bond prices higher.

Published in Bonds: IG
Wednesday, 16 March 2022 20:00

Why You should Be Interested in Active Bond Funds

2021 was a comeback year for active fixed Exchange Traded Funds. Driving this home was a huge set of inflows as they saw a tenth of inflows globally, many of these came from the US. That trend isn’t stopping as nearly 80% of investors are searching to expand that position in 2022. Many investors see active funds having an edge with global turmoil increasing, as Russia-Ukraine escalates, and there are many macro risks domestically. Additionally, investors are clamoring to buy more ESG ETFs in 2022 as this trend shows no signs of falling off.


Finsum: Markets were messy and pretty hard to predict in the aughts, but active management seems to have a leg up in picking tech growth as well as fixed income winners.

Published in Bonds: Total Market
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