Fixed Income Smart Beta Gets $25 Trillion Endorsement

The video discusses the growing interest in factor investing within fixed income markets, particularly through ETFs. It highlights institutional investors' increasing use of factor ETFs and the potential scale of this trend. Concerns about bond ETFs, such as liquidity risks, are addressed, with arguments supporting their stability. The impact of Fed support on bond ETFs is also examined, noting its limited market influence but highlighting its role in promoting ETFs as a viable investment option.

How does increased ETF ownership affect bond liquidity characteristics?

What is the responsibility of issuers regarding bond ETFs as mentioned in the discussion?

What role does the Federal Reserve play in the context of bond ETFs?