FlexShares Exchange Traded Funds, sponsored and managed by Northern Trust, has expanded its ETF offering for investors and financial advisers with a second actively managed fixed income ETF, the Core Select Bond Fund (NYSE: BNDC).
“Demand for fixed income ETFs is growing rapidly as evidenced by the growing share of fixed income ETFs in the past several years,” says Shundrawn Thomas, head of Northern Trust’s funds and managed accounts group. “Investors are particularly interested in ETFs that can serve as core portfolio holdings.”
Actively managed ETFs are relatively new and at USD27.9 billion represent approximately 1.2 per cent of total ETF assets. Of the USD27.9 billion in total actively managed ETF assets, fixed income represents 77 per cent and has grown at an annual rate of 76 per cent since January 2011.
“Our Core Select Bond Fund allows investor to achieve efficient diversification through liquid investments in underlying fixed income ETFs and individual securities,” says Thomas. "We believe our deep experience in actively managed fixed income strategies and our distinctive approach to ETF product development provides investors with the opportunity to outperform traditional fixed income funds."
