Loading…
Loading…
Global ETF Market Facts: 3 Things To Know From Q2 2023
After years of a stable, relaxed fixed-income market, investors suddenly face market turbulence that could upend their bond allocations. Alternative fixed income strategies could provide a bulwark for investors to meet the challenges ahead.
With analytics pricing in four rate increases in 2022, Federal Reserve policy could dictate the fate of the bond markets, but dynamic exposure can help counter the Fed. Federal Reserve Chairman Jerome Powell testified before the Senate Committee on Banking that he would do what's necessary in order to fight inflation.
Rising COVID-19 cases amid the highly contagious Omicron variant are pushing institutional investors like pension plans into bonds. The risk-off sentiment comes just as the Federal Reserve is winding down its bond purchases.
As benchmark Treasury yields continue to flux up and down, investors may want to give active management a closer look to be able to bend with the debt market. It wasn't too long ago that rising yields were dousing the capital markets with a large bucket of volatility.
The iShares Core U.S. Aggregate Bond ETF (AGG) isn't the end-all-be-all for getting core bond exposure when there are options from FlexShares to consider. One such fund that can serve as an AGG alternative is the FlexShares Core Select Bond Fund (BNDC).
Investors continued to plow money into taxable (+$32.0 billion) and tax-exempt (+$4.8 billion) bond funds (including ETFs) for the month of September. For the month, the average taxable and tax-exempt fixed income mutual fund posted a 0.48% and 0.75% decline, respectively, for September and are up 0.50% and 1.27% so far this year.
Getting in and out of trading positions takes deft skill, and that's where an active exchange traded fund (ETF) like the FlexShares Core Select Bond Fund (BNDC) can chip in. With the rising tide of interest rates looming ahead, the fixed income notion has been to move into ultra-short bonds.
Full call transcripts — prepared remarks + analyst Q&A — with speaker-by-speaker formatting and one-click switching across every quarter on file.
Click below to see what's inside, then upgrade to read every transcript for BNDC and 80,000+ other tickers.
Transcripts source: company-published earnings calls. Speaker attribution and formatting are processed in-app.