With the third quarter coming to a close in a few weeks, fixed income investors have had a lot to cheer about thus far in 2016. Indeed, essentially every major asset class has posted positive returns up to this point, with some groupings registering double-digit gains.
Post-Brexit, volatility has been on heightened display, as investors try to discern where value lies in such an uncertain investment environment. Against this backdrop, and with a week’s worth of trading now over, we thought it would be prudent to review where things stand in the fixed income arena.
One of the most talked-about and intriguing categories of ETFs is the actively managed ETF. Active ETFs still represent only a small subset of the ETF universe, but a number of high-profile, traditional active managers have considered entering the space with non-transparent strategies.
Near the end of 2014, we discussed the potential benefits of actively managed exchange-traded funds (ETFs) in helping investors navigate the credit cycle. In early 2012, WisdomTree selected Western Asset Management Company (Western) to serve as sub-advisor for certain fixed income strategies, including the WisdomTree Strategic Corporate Bond Fund (CRDT).
As a result of a recent decision by the Securities and Exchange Commission, the debate over transparency in actively managed exchange-traded products has splashed back into the headlines.