2021 is wrapping up which means we will have annual launch numbers for different types of ETFs. One area of surging growth is active fixed income where there were 15 new launches this year, this is quite an historic change from over 5 years ago when there were a meager 7 new funds launched. Overall the growth is staggering because a decade ago there were only about 25 active fixed income funds and there are well over 175 today. Historically low yields around the globe and significant interest rates have many investors pouring over $137 billion into active fixed income funds, as they rely on pickers to outperform the stock market. A variety of quantitative funds are popping up in fixed income leading to smart beta strategies which can also drive better returns.

FINSUM: Active fixed incomes growth has stayed stable the last five years but the explosion is no doubt a retort to the global macro factors facing fixed income managers.