Popular ETF strategy shift may benefit investors

Advantages of the actively-managed

With Wall Street jitters increasing over the number of interest rate hikes ahead, VettaFi’s Todd Rosenbluth sees signs of a comeback in managed fixed-income exchange-traded funds.

“It’s not clear how fast the Fed is going to slow down and how quickly that that’s going to adjust the marketplace,” the firm’s head of research told CNBC’s “ETF Edge” this week. “So, [investors] want to lean on the active managers to be able to do that.”

Rosenbluth said top ETF providers such as BlackRock’s iShares and Vanguard and newer players such as Morgan Stanley and Capital Group are saturating the market with a wide array of fixed-income ETFs.

“We just now have more products,” he said. “You’ve got two of the leading fixed-income ETF providers offering up some of the largest products. And, they’re able to balance their portfolio shifting by taking on more duration or taking on more credit or less based on the environment that they’re seeing.”

According to Rosenbluth, this versatility is attracting investors by offering more opportunities to take advantage of active ETFs for leverage.

‘Stock-like experience through ETFs’

Source: https://www.cnbc.com/2023/02/18/popular-etf-strategy-shift-may-benefit-investors.html