Roundtable: How can bond ETFs help navigate the rate-hiking cycle?

With many predicting the rate hiking cycle has peaked, bond ETFs have come back into sharp focus with questions around how to play the yield curve front and centre of investors’ asset allocation decisions. How are investors using the wrapper within their portfolios?

Theo Andrew

High Res 2023.11.01 ETF Roundtable 2

Investors are once again excited by fixed income following a period of rising interest rates and high inflation. However, with many anticipating the rate hiking cycle has peaked, fund selectors are now looking at how they can add duration exposure to their portfolio.

A barbell approach, taking both short and long-duration exposure, has been a popular play in recent months, but some are still wary about taking on duration risk.ETFs can play a

valuable role in this, as investors can pick their spot on the curve with relative ease. Be it through long-term asset allocation decisions or more tactical plays in a period of increased volatility, the ETF is an invaluable tool in this environment.

The role fixed income ESG ETFs can play is also a hot topic for investors, with the ability to make more of an impact through fixed income a key benefit for fund selectors.

As a result, the roundtable, in partnership with BNP Paribas Asset Management, assessed the current interest rate environment, how investors can play this with bond ETFs and the need for more product innovation that allows investors to make tactical allocations.


  • Luca Pagni, head of fixed income ETF and index, BNP Paribas Asset Management

  • Patrick Thomas, head of ESG portfolio management, Canaccord Genuity Wealth Management

  • Will Thompson, chief sustainability officer, portfolio manager, Pacific Asset Management

  • Stephen Dowds, CIO, Hay Hill Wealth

  • Lorraine Sereyjol-Garros, head of ETF and index business development, BNP Paribas Asset Management

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


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