FYI: These are heady times for fixed-income ETFs.
Investors put $34.5 billion into these exchange-traded funds in the first quarter, a record for the first three months, according to State Street Global Advisors. Analysts suggest that if this pace of investment continues, assets in fixed-income ETFs could reach $1 trillion by the end of this year.
Investors like the funds as a low-cost product for investing in the bond market. Fixed-income ETFs work like bond mutual funds but offer greater tax efficiency because there rarely are capital gains, and they provide a real-time view into their underlying holdings—something mutual funds don’t offer. Fixed-income ETFs also appeal to investors looking for low-cost options that can increase a portfolio’s strategic capabilities.
Regards,
Ted
https://www.wsj.com/articles/bond-etfs-are-on-track-to-reach-1-trillion-mark-by-the-end-of-the-year-11556726577?mod=md_mf_news
