‘Inflation is unfinished’: How fund selectors are playing fixed income with ETFs

Investors face tough questions on how to allocate within their fixed income portfolios. Here is how top fund selectors are playing the asset class through ETFs

Theo Andrew

a lion with a large feather

The ‘bonds are back’ narrative has been in full swing this year with asset managers and investors playing up the “once in a generation” opportunity in the fixed income space.

While rising interest rates have posed a threat to risk assets so far in 2023, economic data has proved resilient in the face of hawkish monetary policy, leaving many investors unsure about where to allocate within bonds while some have experienced FOMO on the surge in tech stocks.

Despite this, those anticipating a recession have driven demand for fixed income ETFs, within flows hitting record highs in the first half of the year at €31bn, according to data from Morningstar...

This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.