According to Cerulli Associates' U.S. Exchange-Traded Fund Markets 2022 report, active fixed-income ETFs present a massive opportunity for firms. Daniil Shapiro, a director in product development at Cerulli, said in a recent interview that "a mix of factors" have combined to create the opportunity. He stated, "You have investors that are showing an increased preference for the ETF structure and they're increasingly open to accessing fixed income through the ETF structure. At the same time, you have interest rates that are increasing, which makes fixed income more attractive to investors." The report was based on polling Cerulli conducted in the third and fourth quarters of last year. It revealed that among advisers using ETFs, the portion using U.S. fixed-income ETFs has continued to increase, with 70% reporting such use in 2022, up from 63% in 2021. In addition, when ETF issuers were asked to gauge key drivers of fixed-income ETF flows over the next 24 months, greater adviser familiarity with fixed-income ETFs topped the list, cited by 66% of respondents. The second biggest driver was the increased use of fixed-income ETFs by institutions, which was cited by 55% of respondents.
Finsum:According to a new report by Cerulli Associates, active fixed-income ETFs present a massive opportunity for firms due to investors preferring the ETF structure and fixed income being more attractive with higher rates.