Michael Arone, Chief Investment Strategist, U.S. SPDR Business, State Street Global Advisors met with Julie Cooling, Founder & CEO, RIA Channel to discuss the state of the fixed income market and key trends in ETF flows. In today’s low interest rate environment, advisors are increasingly turning towards riskier high-yield bonds for income. While flows on the fixed income side seem to signal risk-on, increased flows to gold, utilities, and REITS represent a defensive position on the equities side. Ultimately, Arone cautions that advisors should, “take risks where they are compensated for it, on the equities side, and ensure that their bonds act like bonds.”
To learn more, head here.