ETFs
Vanguard eyes active fixed-income ETFs
Vanguard Investing – ETF
Vanguard plans to enter the active fixed income ETF space to capitalize on the booming market in Europe.
Speaking at ETF Stream’s ETF Ecosystem Unwrapped 2024 event, Robyn Laidlaw, head of distribution for Europe at Vanguard, said she may launch active ETFs as we enter a “new era fixed income investment.
“There are a lot of opportunities,” she said. “For investors in the fixed income sector, we have clearly entered a new era of fixed income investing.
“Active ETFs would not be ruled out for us, but you have to have the right type of active assets in the portfolios.
“I completely understand why active managers are turning to the ETF market, as there have been massive outflows year after year. It is therefore important to find opportunities in ETFs.
“If we were looking at assets, it would be in the fixed income category. »
The passive giant has a lineup of 19 active fixed-income mutual funds, but has yet to reveal comparable strategies in the ETF format.
Top ETF issuers in Europe
JP Morgan Asset Management is currently the largest active ETF provider in Europe and as of last October made his debut the JPMorgan Active Global Aggregate Bond UCITS ETF (JAGG).
Other major players in the European active fixed income sector include PIMCO, AXA Investment Managers, Franklin Templeton and Fidelity International.
The fund selectors were vocal on the desire to develop more products in the area of active fixed income ETFs, with asset classes such as high yield and emerging markets “ripe for innovation”.
Meanwhile, Janus Henderson entrance The entry into European ETFs presented an opportunity for the company to shake up the active bond sector after announcing plans to acquire fixed income specialist Tabula Asset Management.
Earlier this month, Vanguard appointed BlackRock’s former global head of iShares, Salim Ramji, will replace Tim Buckley as CEO.
This article first appeared in ETF.com’s sister publication, ETFStream.com.
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