Our new fixed income investment research reveals four trends that highlight the ever more important role exchange traded funds (ETFs) play in an evolving fixed income landscape, helping investors to build fixed income portfolios, meet liquidity needs, support the shift to in-house management, and implement ESG objectives.
Source: State Street Global Advisors, May 2022. Chart shows percentage for somewhat/very likely to use ETFs. n=700.
of investors who are increasing exposure to high-yield corporate credit say they’re likely to use ETFs to do so.
assets under management (AUM) in fixed income ETFs.¹
net flows into active bond ETFs globally in 2021, the largest on record.²
of global asset owners respondents said increasing portfolio liquidity is a top priority.
of respondents are increasing allocations to ETFs to manage increased liquidity risks.
of survey respondents agreed that they were under pressure to make more efficient use of fee budgets.
of the largest asset owners are bringing part of their portfolio management in-house.
view active ETFs as a highly important approach for building exposures in-house.
asset managers have put top priority on ensuring their fixed income strategies meet ESG threshold criteria.
of survey respondents plan to implement Paris-aligned benchmarks.
asset managers see ESG ETFs as highly important tools for ESG integration.
For additional institutional insights into our findings and a comprehensive review of what they could mean for fixed income portfolios everywhere, dig more into our analysis.
State Street conducted a survey of 700 institutional investors in 2022. Global survey respondents came from pension funds, wealth managers, asset managers, endowments, foundations and sovereign wealth funds. Their responses reveal how exchange traded funds (ETFs) are an increasingly important tool in the evolving fixed income landscape.