Hello! This week’s ETF wrap brings you some of the buzz around fixed income at the recent Exchange conference in Miami, including views from BlackRock, DoubleLine, PIMCO, State Street and Fairlead Strategies. Please send feedback and tips to firstname.lastname@example.org. You can also follow me on Twitter at @cidzelis and find me on LinkedIn.
Sign up here for our weekly ETF Wrap. The rise in bond yields keeps on resonating. Investors now have an alternative to stocks, particularly with concerns over the Federal Reserve’s interest rate hikes potentially leading to a recession as soon as this year. That’s a theme that investors, including Fairlead Strategies founder Katie Stockton, addressed during a panel discussion on Feb. 7 at the Exchange conference at the Fontainebleau hotel in Miami Beach. Stockton’s Fairlead Tactical Sector ETF
which relies on a technical model and factors such as price momentum to invest in a group of State Street’s SPDR ETFs, currently has the majority of its assets exposed to Treasurys. “It’s highly risk-off at this time,” Stockton said during an interview with MarketWatch on the sidelines of the event on Feb. 6. “In a perfect market,” the ETF would be invested across various sectors of the stock market, but energy
is the sole sector left in the fund after the model kicked out utilities, she said. Around 61% of the ETF’s assets were allocated to U.S. government debt, roughly split between short-term Treasurys
and long-term Treasurys