A few years ago, asset allocators were sceptical about investing in fixed income through exchange-traded vehicles, but in 2016 bond ETFs were bestsellers among European investors, according to Thomson Reuters Lipper.
The global fixed income ETF industry crossed the $600bn mark last year, with inflows of $114bn, according to iShares, while January brought in another $16.6bn of inflows, as investors are forced to respond to macro challenges, regulatory hurdles and liquidity demands. iShares sees the fixed income sector as "ripe for disruption", saying investors are turning to ETFs because traditional methods of trading and building bond portfolios are becoming "outdated", and it expects these products to become more "engrained" with investors. Bond ETFs emerge as winner in 2016 battle to attract inv...
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