ETF strategies and opportunities – Vince Kraljevic and Raghav Mehta

On the program today, Fidelity ETF Strategists, Vince Kraljevic and Raghav Mehta.  From active, factor based, fixed income, sustainable investments to digital assets, Fidelity offers a mix of ETFs for various investment styles and time horizons. Vince and Raghav discuss ETF inflows, Fidelity’s Fixed Income ETF line-up, Bitcoin diversification and much more. They go into recent market trends and data affecting fixed income markets. They say Canada sees interest in shorter duration products, while the US experiences record-breaking flows into bonds.  Despite meeting expectations, inflation components suggest interest in adding duration for yield advantages. They add despite PCE inflation numbers meeting consensus expectations, certain components like shelter costs and services have seen an uptick, suggesting that rate hikes may not be over. This has led to investors showing interest in adding duration to their fixed income portfolios for potentially higher yields. Vince and Raghav discuss bitcoin allocation and diversification. They say Inclusion of Bitcoin aims to enhance diversification and improve risk-return profiles. They add careful position sizing mitigates risk, ensuring balanced portfolio construction. They also discuss equity market dynamics and its implications, inflows and asset allocation.

 

Recorded on March 1, 2024.

 

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