2018 took a turn for the better as far as investors who have long wanted more fixed income ETFs are concerned. After some years of waiting for higher levels of product development in this asset class, there has recently been some significant focus by asset managers, including niche players and larger firms alike.
Our fixed income ETF article finds that the cost of trading bonds has increased since 2008 – but as one commentator points out, ETFs allow investors to trade below the cost they would face in the underlying bond market. This is one reason why they are welcome.
Fixed income markets are also less transparent than equity markets, and less accessible, so ETFs offer a remedy to that problem, too.
ETFs in floating-rate notes and triple-B corporates are available now, as well as more vanilla bonds. Diversification is on the increase, with new solutions on the way.
Nick Fitzpatrick, group editor, Funds Europe
©2018 funds europe
