Displaying items by tag: fixed income

NEOS Investments, an investment firm specializing in options-based income solutions, launched three actively managed ETFs this week, including two fixed income ETFs designed to help advisors and investors navigate the current market environment. The NEOS Enhanced Income Aggregate Bond ETF (BNDI) generates monthly income from investing in a representative portfolio of the U.S. Aggregate Bond Market and implementing a data-driven put option strategy. The NEOS Enhanced Income Cash Alternative ETF (CSHI) generates monthly income from investing in a portfolio of 1–3-month Treasury Bills and implementing a data-driven put option strategy. Both ETFs, which now trade on the NYSE, utilize a put spread approach that involves selling short puts and buying long puts to generate option premiums to be distributed as income without taking on outsized risk.

Finsum:Options-based investmentfirmNEOSrecently launched two fixed income ETFsoffering investors a novel approach to monthly income.

One of the most popular allocations for model portfolios in recent history has been the 60/40 model. A classic allocation with 60% invested in stocks and 40% invested in bonds. Until recently, this model has generated stable returns for investors. However, this year’s brutal returns for both the equity and fixed income markets have investors wondering if the traditional 60/40 model provides adequate protection. In most previous equity downturns, investors have been able to count on bond instruments to hedge negative equity performance due to an inverse relationship between stock returns and bond yields. But this year, investors have been faced with both a down stock market and a hawkish Fed, leading to losses in both asset classes. This has made the 60/40 model seem outdated as of late. While the 60/40 model may not be dead yet, investors may want to consider model portfolios with additional asset classes in the current market environment.

Finsum:With a down stock market and a hawkish Fed, investors may want to reconsider the 60/40 model portfolio.

A slam dunk of a fixed income stream can sound pretty appetizing to any consumer -- including retirees. Consequently, guaranteed rate annuities can be just the ticket for them, according to  annuityexpertadvice.com.

That said, before John Hancocking the dotted line, it’s important to familiarize yourself with the contract terms. After all, you want to circumvent locking into an investment that yields less than satisfactory returns, the site continued.

The sales of multi year guaranteed annuities have surged this year, according to lifehealth.com. First quarter sales chimed in at $14.5 billion, a hike of 30.1% compared to the quarter before.

According to industry surveys, seeing the money well run dry’s the top fear among most retirees, stated winkintel.com.

“Annuities play a critical role as a safe money alternative for so many seniors, especially in our current environment of market volatility,” said Chris Conroy, IAMS’ executive vice president and general counsel.

Touchstone Investments, which is known for its Distinctively Active® funds, recently announced the launch of its fourth actively managed ETF, the Touchstone Ultra Short Income ETF (TUSI). The fund, which started trading on the Cboe BZX, seeks maximum total return consistent with the preservation of capital by primarily investing in a diversified portfolio of investment grade fixed income securities. Its portfolio is managed to maintain an effective duration of one year or less under normal market conditions. Managers for TUSI buy fixed-income securities believed to be attractively priced relative to the market or similar securities. The launch follows three actively managed ETFs launched during the summer including the Touchstone Strategic Income Opportunities ETF (SIO), the Touchstone US Large Cap Focused ETF (BZX), and the Touchstone Dividend Select ETF (DVND). Each ETF has a corresponding mutual fund that shares a similar investment strategy. All four ETFs are sub-advised by Fort Washington Investment Advisors. 

Finsum:Touchstone Investments recently launched the Touchstone Ultra Short Income ETF, its fourth actively managed ETF launch this summer.

According to Refinitiv Lipper’s fund flows, fixed income ETFs saw a net $4.5 billion in weekly outflows for the week ending on August 24th, 2022. This marked the group’s first weekly outflows in nine weeks. This also corresponded with bond ETF’s third straight week of average negative returns. The bond types with the largest outflows included corporate high yield ETFs with $3.0 billion in outflows, corporate investment grade ETFs with $733 million in outflows, and government Treasury ETFs with $570 million in weekly outflows. Corporate high yield ETFs had their eighth largest weekly outflows to date, while corporate investment grade ETFs saw their first week of outflows in eight weeks. However, not all fixed-income ETFs saw outflows. International & global debt ETFs saw $101 million in inflows and government mortgage ETFs saw $15 million in weekly inflows. Those were the only two fixed-income groups to report inflows.

Finsum:With fixed income ETFs seeing their third straight week of negative average returns, bond ETFs see their first outflows in nine weeks.