Friday, 12 April 2024 05:00

Advisors Missing the Boat on Active Bond Funds

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A financial advisor survey by Capital Group reveals a surprising lack of understanding about active fixed-income ETFs. Despite growing demand, less than 4% of assets are allocated to them, with limited advisor confidence in using them. 

 

Surveyors highlight the benefits of active fixed-income ETFs, including consistent returns, portfolio diversification, and potentially lower fees. This knowledge gap, especially among wirehouse advisors, may be due to their recent introduction. 

 

Younger advisors seem more receptive, suggesting wider adoption as awareness grows. Capital Group believes active fixed-income ETFs will bridge the gap with passive options, urging advisors to prepare for client interest.


Finsum: Macro climates like the current one almost always give bond pickers and edge, and advisors are missing alpha. 

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