Reported about 1 year ago
A rocky period in the debt markets has led to American savers allocating about $105 billion into actively managed fixed-income funds this year, surpassing the $74 billion inflow into index-tracking funds as of April 30. This shift marks the first time since 2021 that more money has flowed into active bond funds. Bond investors are opting for professional bond pickers due to uncertainties surrounding inflation data and interest rate cuts by the Federal Reserve. Despite generally higher fees, active bond funds have performed well, with 74% outperforming their benchmarks in the past year, attracting investors looking for higher returns and risk mitigation. Exchange-traded funds (ETFs) have also gained popularity, with $36.2 billion influx noted this year in actively managed bond ETFs, offering tax advantages and liquidity benefits.
Source: YAHOO