Role Of Fixed Income ETFs Expands

Fixed income exchange-traded funds (ETFs) are playing an "expanded role in portfolio construction," says a global survey by State Street Global Advisors. ‘The Role of ETFs in a New Fixed Income Landscape’ shows that the role of ETFs in asset allocation is expanding to non-core sectors. For example, 62 per cent of investors who are boosting exposure to high-yield corporate credit over the next 12 months will likely use ETFs to do so, with 53 per cent saying the same for emerging markets debt. It found that 50 per cent of investors were making significant use of ETFs to build their core allocations, such as government bonds and investment-grade credit, but just 27 per cent were doing so in their non-core allocations.