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
    • Crypto ETF Hub
  • 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. Volatility Resource Channel
  2. Ride Bank Turmoil With Active ETFs FLCB, FLGV
Volatility Resource Channel
Share

Ride Bank Turmoil With Active ETFs FLCB, FLGV

Nick Peters-GoldenMar 14, 2023
2023-03-14

Perhaps the key virtue of active management is its ability to respond to uncertainty — a real asset as concern surrounding banking contagion from Silicon Valley Bank (SVB) roils markets. In a situation that is still evolving, impacting other banks like First Republic Bank (FRC) and adding further confusion for the Fed’s campaign against inflation, investors may want to look to active fixed income ETFs for both yield and for the relative safety provided by debt securities as equities wobble.

Part of the complication for market watchers right now is the added fluctuation in the 2-Year Treasury yield, saw its biggest slide in decades to start the week. Treasurys have been a popular place to be over the last few months, and with the 2-Year Treasury recovering somewhat, one of the active fixed income ETFs to consider may be the Franklin U.S. Treasury Bond ETF (FLGV B-).

FLGV combines an active approach with a nine basis point fee, and is approaching $400 million in AUM as well as its three-year milestone coming up in June. It has seen its YTD return of 2.6% nearly matched over the last week, according to VettaFi, returning 2.5% in that time and adding $5.2 million in that time. FLGV’s active approach allows it to invest across the U.S. Treasury maturity spectrum from one to thirty years, with derivatives also an option to enhance returns and increase liquidity.

Another option may be the Franklin U.S. Core Bond ETF (FLCB A), which is also actively managed and charges just 15 basis points, which compares well for an active fund to some of its passive core bond rivals. Bond valuations have improved, with notable yields available in high-quality government bonds, making a core option with an active, flexible lens a strategy to consider.

FLCB actively invests across investment-grade bonds, including Treasurys but also mortgage-backed debt and corporate bonds among the slew of available debt securities available to investors. FLCB has outperformed both its ETF Database Category Average and its Factset Segment Average by 48 and 45 basis points respectively, picking up $21 million in net inflows over just the last five days.

The bank situation is just the latest wrinkle for investors already watching the Fed’s campaign against inflation and rate hike scheme closely. Actively managed ETFs have started the year well, and for those investors looking for active fixed income ETFs to navigate the moment, the duo of FLGV and FLCB may be worth watching.

For more news, information, and analysis, visit the Volatility Resource Channel.

VettaFi is an independent publisher and takes responsibility for our edit staff, research, and postings. Franklin Templeton is not affiliated with VettaFi and was not involved in drafting this article. The opinions and forecasts expressed are solely those of VettaFi and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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