BINC ETF

Active management in bond portfolios can lead to higher risk-adjusted returns compared to equity funds. BlackRock Flexible Income ETF offers diversification, high yield, and low sensitivity to interest rates. BINC has outperformed peers like the PIMCO Active Bond ETF in a 1-year period, but holds riskier assets like high-yield bonds and emerging market debt.

On this week's episode of ETF Prime, host Nate Geraci unpacks the rise of active ETFs in 2024 with VettaFi Investment Strategist Cinthia Murphy. Later, Geraci welcomes Kaitlin Hendrix, asset allocation research director at Dimensional Fund Advisors, to discuss the firm's new unified managed account (UMA) platform.

Interest in active fixed income products has swelled in 2024, as credit spreads narrow and the Federal Reserve holds fast to a “will they, won't they” game of trimming interest rates. Active fixed income ETFs have seen north of $11 billion in net inflows this year and $27 billion globally.

U.S. Weekly FundFlows Insight Report: Equity ETFs Attract Largest Weekly Net Inflows Since Dec. 20, 2023 For Fund Flows Week

Actively managed ETFs continue to gain traction. After a strong 2023, active ETFs gathered 34% of the net inflows in the first two months of 2024.

BINC is a relatively new bond ETF from BlackRock. It offers investors diversified bond exposure, an average 5.3% yield, and has outperformed since inception. The fund's active investment strategy and focus on diversified exposure to bond sub-asset classes contribute to its outperformance.

BlackRock Flexible Income ETF is a newly launched active bond ETF managed by star manager Rick Rieder. BINC aims to provide exposure to hard-to-access fixed income sectors and has outperformed peers by betting on sectors like CLOs. Although BINC has outperformed in its short history, given its reliance on a star manager, I am hesitant to recommend the fund without more performance data to analyze.

BlackRock has listed the BlackRock Total Return ETF (BRTR) on the Nasdaq. The actively managed ETF seeks alpha opportunities across the fixed income universe.

With more than 3,000 ETFs to cover and many new ones launching each month, it is easy to forget. For many people, S&P 500 Index-based ETFs remain the core of their portfolio.