Bond Kings Draw Record $44 Billion to Actively Managed ETFs

  • Model portfolios helping drive flows into active bond ETFs
  • Bond managers are beating the market the most since 2012
Fed’s Powell Says Recent Inflation Readings Add to Confidence
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The moment bond powerhouses have been waiting for is coming into view, and the payoff is record sums of client cash flowing into actively managed ETFs.

With the Federal Reserve poised to cut rates as soon as September, investors poured $245 billion overall into active and index mutual funds and exchange-traded funds in the first half of the year, according to Morningstar Direct. That’s compared to about $150 billion in the first half of 2023.