American Century Diversified Corporate Bond ETF

KORP

Market cap $599M

Interest rates have dropped, and with that cut comes the prospect of a shifting fixed income outlook. Investors may be seeking more yield, but the question, of course, is where to find it.

At this point in time, the Agg should need no introduction.  The Bloomberg Aggregate Bond Index, known as “the Agg,” is one of the most-used tools for advisors looking to evaluate the performance of the bond market.

We think the Fed has time to assess the impact of tariffs, and we expect it to wait to cut rates until the data show that tariffs are impacting the real economy. So far, there are no signs of recession in the hard data. The tariff pause offers the possibility to avoid worst-case economic scenarios before the damage is crystalized. We believe technical factors will continue to drive market dislocations in spreads and sectors, and that active managers can navigate this more effectively.

Have you checked on your fixed income allocation lately? It's one thing to buy an ETF tracking the Bloomberg US Aggregate Index, (BBUSATR), or the AGG.

Looking for an intriguing combination of fixed income ETFs to freshen up your fixed income allocation? Not only are not all fixed income strategies created equal; not all fixed income approaches offer the same benefits.

Taking a closer look at your fixed income allocation? With rate cuts in the rearview mirror, but more potentially on the way, it may be time to do so.

M&A was almost dormant in 2023. In the US, as a proportion of the market value of the benchmark equity indices, it fell to its lowest level in 20 years, according to McKinsey. Credit investors are not traditionally supposed to be fans of M&A, and it's true we are wary of leveraging M&A, where debt is loaded onto balance sheets to buy competitors. We are seeing a comeback for M&A that we think is likely to continue through 2024.