The stunning growth of actively managed ETFs has been fueled in large part by fixed income products. Plenty of ETF industry observers expect this trend will remain in place next year.
Alone, that could be good news for ETFs such as the Neuberger Berman Total Return Bond ETF (NBTR ). Importantly, the 2026 outlook for NBTR, which turns two years old later this month, is worth examining beyond continued adoption of actively managed fixed income ETFs. Advisors and income investors want to know why active management as it relates to fixed income could be beneficial in 2026 and why ETFs like NBTR could deliver for market participants.
Some of that answer boils done to global interest rate policy. Entering 2026, the Federal Reserve could have a couple of more rate cuts in store. Meanwhile, the Bank of Japan is viewed as a candidate for more hikes. The European Central Bank (ECB) is likely to stand pat.
NBTR Could Be 2026 Bond ETF Winner
As of the end of November, NBTR was up more than 8% year-to-date. It outpaced some passively managed aggregate bond ETFs in the process. The stars could be aligning for the ETF to do more of the same next year, with an assist from the aforementioned diverging global monetary policy.
“This provides huge opportunity – but only to those who are active in their bond allocation and capable of taking advantage of fast-changing and disparate economic conditions globally,” observed Schroders. “Passive management in this environment could leave portfolios overallocated to the relative ‘losers’ as yield moves diverge, and that could lead to underwhelming returns and greater risks.”
NBTR’s status as an actively managed ETF is relevant on another front. There are bound to be periods of uncertainty in 2026. In those times, the marriage of active management and fixed income can bear fruit for investors.
“Whether its concern over concentrated AI-driven growth, inflated equity prices, volatile US policy or other risks, the diversification benefits of fixed income as an asset class are increasing as inflation pressures globally remain benign,” added Schroders.
Uncertainty at some point is all but assured, but there will be opportunity for active bond managers to generate alpha for investors in 2026. That just adds to the allure of NBTR’s active profile.
“Opportunities to add risk in credit will present themselves in 2026. They always do, and we rarely know the catalyst in advance,” concluded Schroders.
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