Are ETFs an effective way to invest in fixed income?

EXCHANGE-TRADED FUNDS

We debate whether these structures are suitable for fixed income investors.

YES Stephen Cohen, head of iShares Investment Insights For professional investors, fixed income has always played a role in well-diversified portfolios. Since the financial crisis however, we have entered a new world of investing and fixed income is no longer the asset class it once was. Demand for bonds has increased greatly, driven by the need to de-risk and de-leverage portfolios, which has led many investors to increase their allocations to bonds and away from equities. Monetary policy has created a situation where yields are very low, particularly for government securities, a...