10 June 2026

At The Money: How Fixed-Income Investors can use ETFs to their Best Advantage.

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7Insights

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Market-Pricing Duration Decision Rule

Match bond duration to your view of the rate path—or diversify when unsure

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Insights & moments

The myth-busts, hot takes, explainers, and tools worth keeping.

Myth Buster· 1

Myth Buster06:51

Bond ETFs Stayed Tradable During the 2020 Stress Test

Critics expected bond ETFs to struggle in a severe market disruption. During the worst of the February–March 2020 turmoil, some underlying bonds were difficult to trade, while ETFs continued trading in record volume—even when their exchange prices were below reported portfolio values.

Investors had long waited for bond ETFs to face a severe stress test
Even some Treasury and investment-grade bonds became difficult to trade
Bond ETFs remained tradable during the disruption
The 2022 rate shock provided another test of the wrapper

“But ETFs, even though they may have been trading at a discount, were tradable, and they were trading in record volume”
Steve Laipply · 08:02

“That was the test they were waiting.”
Barry Ritholtz · 08:13

#liquidity#market stress#pandemic

Hot Take· 1

Hot Take11:22

Investors Are Looking Through Rate Volatility to Income

Despite sharp changes in expectations for Federal Reserve policy, the guest says bond ETF flows continued at record levels and were running ahead of the prior year. He argues that investors are focusing on the renewed ability to earn meaningful fixed income rather than fixating on each move in the ten-year yield.

Bond ETF flows remained strong amid changing rate expectations
Most fixed-income assets were yielding above four percent at recording time
That income opportunity was much rarer before the pandemic
Investors appeared more focused on income than exact Treasury-yield levels

“What they are focused on is the income opportunity.”
Steve Laipply · 11:55

“the majority have fixed income assets are now yielding above four percent.”
Steve Laipply · 11:59

#yield#fund flows#income

Explainer· 3

Explainer01:41

How Bond ETFs Opened an Opaque Market

Before bond ETFs, buying bonds was largely a voice-driven process involving calls to multiple dealers, uncertain execution prices, and uneven access. Exchange trading gave investors a visible price and access to a diversified portfolio of bonds rather than a single security.

Dealer-based bond trading offered limited price transparency
Access and treatment could vary with the investor's resources
Bond ETFs made diversified portfolios tradable on an exchange
Exchange quotes made current prices visible

“buying bonds was a non trivial exercise, and the way it was done it was a very much voice driven market.”
Steve Laipply · 01:54

“They actually opened that whole world up to transparency.”
Steve Laipply · 02:42

#bond etfs#market access#transparency

Explainer03:47

Why Bond ETFs Offer More Visibility Than Mutual Funds

Fixed-income mutual funds generally price once at the end of the day, leaving an investor uncertain about the execution value of a mid-day order. Bond ETFs trade intraday at observable prices and commonly disclose holdings daily, including for active strategies.

Mutual funds still have a role in retirement-plan architecture
Mutual-fund orders receive an end-of-day price
Bond ETFs let investors evaluate and act on an intraday quote
Many bond ETFs provide daily portfolio transparency

“mutual funds price one one time a day at the at the end of the day”
Steve Laipply · 03:59

“a lot of investors are attracted that daily transparency as well.”
Steve Laipply · 04:56

#mutual funds#intraday trading#disclosure

Explainer15:12

The ‘Plus Sectors’ Add Income Beyond Core Bonds

Beyond Treasuries and investment-grade corporate bonds, the guest identifies high yield, emerging markets, and securitized assets as ‘plus sectors.’ He highlights mortgages, asset-backed securities, and commercial mortgage-backed securities as sources of income, while noting that high yield and emerging markets may not suit every investor.

Core demand has favored high-quality bonds
Plus sectors extend beyond Treasuries and investment-grade credit
Securitized assets include mortgages, ABS, and CMBS
The attraction is income relative to duration risk
Some higher-credit-risk sectors will not suit every investor

“you also have things like securitized assets which offer you know, a pretty attractive income profile relative to relative to their duration risk”
Steve Laipply · 15:28

“that income theme without taking outsized risk.”
Steve Laipply · 16:06

#securitized assets#credit risk#income

Takeaway· 2

Takeaway05:17

Bond ETF Choice Now Extends Far Beyond Asset Class

The guest says the United States now has more than a thousand bond ETFs. The selection spans sectors such as Treasuries, credit, high yield, and emerging markets, then adds maturity slices, hedges, outcome overlays, and active strategies within those areas.

The US market has more than a thousand bond ETFs
Investors can select by fixed-income asset class
Products also divide exposure by maturity
Hedged, outcome-oriented, and active strategies broaden the range

“I think we're over a thousand bond ETFs in the United States alone.”
Steve Laipply · 05:34

“the selection is enormous now and it spans not just asset class meaning treasuries, credit, high yield, emerging markets, et cetera, but also within a…”
Steve Laipply · 05:51

#fund selection#asset classes#active etfs

Takeaway12:48

TIPS Can Anchor a Portfolio's Inflation Protection

The return of inflation after it had been widely dismissed demonstrated the need for a resilient portfolio, according to the guest. Investors can choose dedicated TIPS ETFs with different maturities or broader bond ETFs that include an inflation-linked component, then decide how heavily to lean into that protection.

Unexpected inflation exposed a portfolio vulnerability
TIPS provide direct inflation-linked bond exposure
Shorter-maturity products can target inflation more closely
Some broad bond ETFs now include an inflation component

“you should have a resilient portfolio, and that resilience some of which has to be anchored in try to protect against inflation.”
Steve Laipply · 13:12

“going forward you probably want to have some protection against inflation.”
Steve Laipply · 14:00

#tips#inflation#portfolio resilience