I’ve always been a big fan of actively managed bond funds as a way for investors to access risk managed or alpha-generating strategies. Unlike active stock pickers, the best managers from the likes of PIMCO, DoubleLine, Guggenheim, and Loomis Sayles have proven track records of adding value for their investors versus a passive benchmark. Fixed-income is still one of those asset classes where sector positioning, duration targeting, and credit selection can make a huge impact on net returns.
Look back through my blog and you will see numerous references to some of my favorite funds like the DoubleLine Total Return Bond Fund (DBLTX) or the PIMCO Income Fund (PONDX).We have owned both for our clients and in our own accounts for years.
More recently, we have focused on their complimentary ETF portfolios via the PIMCO Active Bond ETF (BOND) and the SPDR DoubleLine Total Return Tactical ETF (TOTL).Both funds have proven to be worthy alternatives to well-known indexes such as the iShares Core U.S. Aggregate Bond ETF (AGG) or the Vanguard Total Bond Market ETF (BND).Lower volatility, better yields, and more attractive net returns are just some of the highlights from these active bond funds since their inception.
That said, I’m constantly on the lookout for top-tier bond managers that make the leap to exchange-traded funds. This move typically brings with it lower management fees for investors along with the capability to access a capable and proven portfolio.
It’s this vigilance that brought the First Trust TCW Opportunistic Fixed Income ETF (FIXD) onto my radar several months ago. This fund was released on the First Trust platform with TCW Investment Management as the sub-advisor.For those who may not be aware, TCW is a west coast fixed-income manager that has been in existence since 1971 and has nearly $200 billion under management. They’ve been around the block and know their stuff.
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