Todd Rosenbluth and Jon Fee on the Secret Income Story

Last month’s ETF headlines were all about crypto and the strength of the heavyweights in the equities. In an interview with VettaFi CMO Jon Fee, VettaFi Head of Research Todd Rosenbluth was drawn to a different story.

“I’m going to be boring and tell you that what was most exciting to me was that 90% of the fixed income flows went into government bond ETFs: Ultra-short, hide-under-the-mattress ETFs like the iShares Short Treasury Bond ETF (SHV A) and the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL A-).” Rosenbluth sees investors as hunkering down and riding out the volatility of the marketplace, turning to bonds for safety.

Fee noted that, “sometimes headlines do not dictate bottom lines,” and asked Rosenbluth if any new ETFs caught his attention last month. Sticking with fixed income, Rosenbluth pointed to a slate of new ETFs from Capital Group, including the Capital Group Core Bond ETF (CGCB B). He also expressed excitement that Capital Group is building out its lineup and leveraging its active management expertise.

Asked what the financial advisor sentiment is, Rosenbluth shared that many advisors are combining active and passive strategies: “There’s room for both active and index based products.”

Rosenbluth also directed advisors to the upcoming income strategy symposium. As advisors look for ways to position their fixed income strategies, the symposium provides direct exposure to the thought leaders shaping the space. Additionally, it is a free event.

Fee asked Rosenbluth to look at what’s on the horizon in November. “My eyes are on whether or not we get a spot bitcoin ETF,” Rosenbluth said. He also noted that November and December tend to be strong for equity flows. This November could be different, however, given the volatility in equities.

Register for the Income Strategy Symposium here.

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