How to Find Golden Needles in the Fixed income Haystack

Rick RocheIn a series of five installments, I will state the case for financial advisors to allocate to actively managed bond exchange traded funds (ETFs) and bond funds. In part 1, I discuss recent regime changes and reveal findings from the SPIVA scorecard and Morningstar’s U.S. Active/Passive Barometer.

The journey to select experienced and benchmark-beating tactical bond strategists begins by identifying multi-sector bond specialists. The U.S. and global bond markets are vast – much bigger than U.S. or international equity markets. Bond markets have many more sectors than those included in passive bond indexes.

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