Bond Indexes Are ‘Broken,’ Says Franklin Templeton ETF Head
- Active management necessary for strong bond ETFs: O’Connor
- Indexes forced to buy high, sell low, says Pimco’s Suskind
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Fixed-income indexes are “broken,” making active management necessary for successful bond ETFs, according to the head of global exchange-traded funds at Franklin Templeton Investments.
“Investors typically have gone into passive fixed income primarily because that’s all there was,” Patrick O’Connor said Thursday in an interview on the sidelines of the Inside ETFs Canada conference in Montreal. “But as a firm, and as an active manager, we don’t just think indexes are flawed in fixed income, we think they’re broken.”