ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Core Strategies Channel
  2. Go Active as Investors Dive Back Into Corporate Bonds
Core Strategies Channel
Share

Go Active as Investors Dive Back Into Corporate Bonds

Ben HernandezJun 08, 2022
2022-06-08

The bond market could be seeing upside ahead, but wary investors might not be ready to simply jump back into the market, especially with respect to riskier corporate bonds. That said, an active management approach could help quell some of the fear.

It’s an opportune time for corporate bond investors if the positive momentum can hold up. As investors are well aware, the bond market has been following the stock market downward amid inflation fears and rising interest rates.

However, the tide could be turning as more investors feel more apt to dip their toes back into the bond market waters. Returns are also reflecting as such, according to a Reuters article.

“U.S. corporate bonds posted their first positive monthly return this year in May as easing inflation jitters alleviated pressure on rates and the possibility of a less hawkish Federal Reserve mitigated concerns over companies’ ability to repay their debt,” said the article, which was published on June 1.

As mentioned, investors are responding with renewed vigor as their taste for corporate bonds begins to sweeten. Bargain hunters in particular are eyeing the corporate bond market after the debt space has fallen to levels that look attractive in terms of value.

“Investors are going bargain hunting for beaten-down corporate bonds,” a Wall Street Journal article said.

“That is a reversal from earlier in the year, when investors sold off even the highest-quality debt,” the article added. “The turnaround highlights the tensions pressuring financial markets. In recent weeks, investors have grown more confident about the Federal Reserve’s path for raising interest rates to wrangle inflation—and more worried that, as a result, growth has begun to slow.”

An Active Corporate Bond ETF Option

Investors who are still wary of diving back into bonds, corporate bonds in particular, can opt for active management. This allows for more dynamic exposure that can shift accordingly when the corporate bond market changes, for better or worse, via an ETF such as the American Century Diversified Corporate Bond ETF (KORP C+).

The fund seeks current income by emphasizing investment-grade debt while dynamically allocating a portion of the portfolio to high yield. Per its product website, KORP creates a systematically managed portfolio that integrates fundamental and quantitative expertise that:

  • Adjusts investment-grade and high yield components to balance interest rate and credit risk
  • Screens individual credits to seek those with sound fundamentals, reduced default risk, attractive valuations, and liquidity
  • Adjusts industry and duration exposures as risks and opportunities emerge

For more news, information, and strategy, visit the Core Strategies Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X