Fixed income ETF provider Tabula has published research which shows that 24 per cent think 2020 fixed income ETF flows will increase dramatically when compared to 2019 and 64 per cent think there will be a slight increase. Tabula reports that last year over EUR55 billion was added to fixed income ETFs/ETPs in Europe.
The firm reports that year-to-date European fixed income ETFs have seen EUR8.5 billion in flows. In terms of the reasons why professional investors expect flows to increase, 70 per cent say it will be due to more fixed income ETFs being listed, and therefore more funds available in which to invest.
Over half (56 per cent) say it will be because of greater innovation in the sector with new ETFs offering access to more parts of the fixed income market. One in three (32 per cent) say it will be due to ‘sector rebalancing’; ETFs are under-utilised within the fixed income sector. Only 8 per cent say it will be down to cost and that ETFs enable investors to gain access to fixed income at lower prices.