Fidelity Tactical Bond ETF

FTBD

Market cap $37.4M

As the rate-cutting cycle ebbs, security selection will become more important in the bond market. FDHY and FTBD both use active, tactical approaches to investing in all corners of the bond market.

Last month saw the Federal Reserve cut interest rates for the second time, with capital markets prognosticating on just how aggressive the central bank will be in 2026. This uncertainty could cause investors to wonder how to extract income in this rate-cutting cycle.

The second half of 2024 appears increasingly favorable for actively managed bond ETFs. Michael Plage, CFA, portfolio manager at Fidelity Investments, talked active fixed income investing in the Third Quarter Fixed Income Symposium hosted on the VettaFi platform.

Actively managed ETFs continue to remain popular. In the first seven months of 2024, these funds gathered 25% of the industry's net inflows.

Thought leaders and portfolio managers across the industry weighed in on the direction of fixed income investments during the Q3 Fixed Income Symposium hosted by VettaFi.