02.07.24

Fixed-Income ETFs See Rising Inflows, More Advisor Interest

by: Edward Hayes

Exchange-traded funds (ETFs) continue to gain market share from active funds, and many industry experts are anticipating that fixed-income ETFs in particular will be the hottest product. “If we had to paint one sustainable story, it has to be a greater uptick of fixed income in a world where interest rates are incrementally higher than they were before,” said Daniil Shapiro, director of product development at Cerulli Associates. Last year, more than $225 million of inflows went into fixed-income ETFs, according to Cerulli. BlackRock saw more than $100 billion of inflows into fixed-income ETFs in 2022 and $72 billion last year, according to Steve Laipply, U.S. head of iShares Fixed Income ETFs. The interest involvement of large institutions has paved the way for greater interest from advisors, who are becoming more comfortable with the ETF structure and are looking for different investment styles, according to Shapiro.

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