BINC ETF

What a remarkable year it has been! When I eventually retire, I will definitely remember 2024 with great affection.

The iShares Flexible Income Active ETF provides a variety of fixed-income investments, aiming for a steady yield of about 5%. With active management, it can choose from different assets like U.S. Treasuries, corporate bonds, and mortgage-backed securities to seek high-income chances while reducing risks. Monthly dividends are paid when possible, focusing on keeping the yield stable despite changes in interest rates, although these payments may not always be consistent.

The supply and demand for active ETFs has increased in 2024. We think a new active product from iShares is worth keeping an eye on.

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.