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Investor and personal finance author Ric Edelman believes it's a practical strategy to take chips off the table right now. He includes struggles in the real estate market, high interest rates, government shutdown risks and the Israel-Hamas war. "We're seeing increased interest in short-duration fixed income," said the firm's head of global product strategy and development. Framsted speculates the investors are making the move to short-duration funds in response to the volatility of today's market. "We're seeing interest among our client base who tend to be longer-term oriented in nature across the full spectrum.
Persons: Ric Edelman, it's, CNBC's, Edelman, there's, I've, I'm, You've, Holly Framsted, Framsted Organizations: Investor, . Treasury, The, Core, Capital Group Locations: Israel
The spate of new launches comes as cash floods into fixed income products. "On one hand, it helps explain the dual-edged pain for 60/40 portfolios this year, but the -17% decline now has bond ETFs offering realistic yields as an equity alternative. This helps explain the continued surge to Treasury ETFs, which again led our category workbook with +$12 Bn [last week] and over +$110 Bn YTD," Sohn added. Holly Framsted, the director of ETFs at Capital Group, said the firm is not trying to time the market with its launches but does believe there is an underserved demand for actively managed bond ETFs. Capital Group launched three more fixed income ETFs, including funds focused on municipal bonds and short duration bonds, last week.
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