Unlimited possibilities with ETFs
Exchange traded funds (ETFs) are simple, efficient, and low-cost tools that can help you navigate today’s complex global bond market. Though still a relatively small part of the overall bond market, fixed income ETFs are increasingly gaining momentum among traditional bond buyers as they discover the many possibilities of using ETFs.
One of the key drivers of growth comes from structural advantages of ETFs. ETFs have several features that you may find attractive, including the ability to trade throughout the day, transparent holdings, and generally low fees. ETFs can also provide you with more targeted and diversified exposure to the fixed income market compared to single bonds and other investment vehicles. Being able to trade on exchange means that there is full daily transparency and more liquidity for fixed income investors. The intraday liquidity, visibility of transaction costs and trade volumes has also improved price discovery, which ultimately allows investors to be agile in today’s market environment.
Along with structural benefits, fixed income ETFs can also be used to meet a variety of portfolio objectives and find opportunities in less familiar asset classes. Fixed income ETFs deliver low cost and very efficient exposures for core portfolio allocations, which is increasingly important with yields remaining at historical lows. Flexible trading characteristics and targeted nature of ETFs mean that they can also be used for tactical allocation decisions. Carefully constructed ETFs can also offer innovative solutions for yield. Lastly, a systematic approach and transparent methodologies used in ETFs can ensure the right balance between ESG improvement and tracking for ESG-conscious investors.
Yields from traditional segments remain low in historical terms. While central banks start to raise rates as Covid-19 emergency measures come to an end, could now be a good time to consider using fixed income ETFs to make the most of the opportunities available?
Discover (un)fixed income
We know investors are living through an unprecedented period of market disruption and volatility. As we face these new realities, we think taking an unfixed approach to fixed income is an advantage.
From active to passive, from mainstream to innovative, we have the expertise, the strategies and the flexibility needed to match your objectives as markets evolve.
Investment risks
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The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.
Important information
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This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.