Bringing you live news and features since 2006 

Wider opportunities seen for fixed income ETFs: Cerulli Associates


Fixed-income ETFs are gaining ground, due to incrementally higher yields and greater investor comfort levels, writes Cerullia Associates. A strong product development opportunity exists for managers offering active fixed-income exposures, given the white space for fee-competitive, attractively priced products, according to the firm.

Issuers attribute expected future fixed-income ETF asset growth to greater uptake by advisers and institutional investors—66 per cent cite greater adviser familiarity as a top-three asset growth driver in the next 24 months, and 55 per cent say the same for greater institutional use. Meanwhile, 38 per cent point to both higher yields and advisers’ need to access lower-cost, fixed-income exposures. 

Fixed-income product development among issuers is now taking priority over even the more sizable U.S. equity asset class, with 66 per cent of managers citing fixed income as a primary product development focus and 57 per cent citing US equity.  

Cerulli expects fixed-income ETF product development to follow two avenues, with some products becoming more targeted and offering access to niche allocations. At the same time, other new fixed-income ETFs will reflect mutual funds via more diversified exposures meant to offer a tax- and price-efficient way to access fixed-income exposures for the long run. 

Combined with greater product development focus amid existing white space in fixed income versus the far more product-saturated equity space, a strong and attractive asset-gathering opportunity exists for fixed-income ETFs. “Issuer openness to offering transparent active fixed-income strategies creates room for the revenue generation associated with active exposures—even if managers will still have to lower prices in the fee-competitive ETF industry,” says Daniil Shapiro, director. “This optimism is underscored by the perception of a virtuous cycle by which a greater variety of quality and appropriately priced exposures help make fixed-income ETFs a go-to for a broader set of investors,” he concludes.  

Latest News

The August data from LSEG Lipper shows that the global ETF industry held USD10,547.4 billion in assets under management on..
HANetf has announced that their European Green Deal UCITS ETF (ticker: EUGD) has reached USD52 million (EUR49.9 million) in assets..
Legal & General Investment Management (LGIM) has announced the launch of the L&G Global Brands UCITS ETF. The firm writes..
Vienna Stock Exchange has launched three new thematic indices: CECE Reshoring, CECE Commodity Producers and CECE Clean Energy, writing that..

Related Articles

John Ciampaglia, Sprott Asset Management
Geo-political tensions and concerns about hitting clean energy targets have brought the focus back onto nuclear power in recent months,...
Nick King, Robeco
Europeam investment management giant Robeco has announced the appointment of Nick King as Head of Exchange Traded Funds (ETFs), in...
Kristof Gleich, Harbor Capital
Harbor Capital burst onto the ETF issuance world in 2021 and now has USD1.1 billion in assets in ETFs. But...
Europe’s thematic ETF provider, Rize ETF, has been acquired by ARK Invest LLC, the parent of ARK Investment Management LLC,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by