Renewed Fear About Growth Fuels Record Fixed-Income ETF Inflows: Pimco's Braun

The video discusses the dynamics between active and passive investing, focusing on the rise of fixed income ETFs, particularly those managed by PIMCO. It highlights the significance of fixed income in volatile markets and the growing preference for active management. The discussion also covers the flaws in passive indices, the role of smart beta strategies, and the importance of diversification in bond portfolios.

What was a key factor in PIMCO's success in the ETF market?

• Avoiding fixed income strategies

• Focus on equity ETFs

• Late entry into the ETF market

• Early entry into the ETF market

Why are fixed income ETFs seeing more inflows than equities for the first time in a decade?

• Higher returns in equity markets

• Stable global growth

• Increased volatility in equity markets

• Decreased interest in bonds

What percentage of fixed income ETFs are actively managed?

• 10%

• 90%

• 5%

• 25%

Why do many investors choose passive fixed income ETFs?

• They offer higher returns

• They are less risky

• They replicate indices like the AG

• They are easier to manage

What is a major flaw in indices like the AG?

• They are debt-weighted

• They are too complex

• They focus on equities

• They are too diversified

What is the main goal of smart beta strategies?

• To reduce diversification

• To focus on equities

• To create better indices

• To increase beta

How does PIMCO approach diversification in its bond portfolios?

• By delivering a diversified basket of bonds

• By avoiding mortgage holdings

• By increasing exposure to non-financials

• By focusing solely on corporates