American Century Diversified Corporate Bond ETF

KORP

Market cap $780M

Corporate bonds, particularly those in the investment-grade corporate camp, are enticing to fixed income investors due to higher yields than cash or Treasuries. Moreover, default rates have been relatively low in the U.S. for an extended period of time, which also indicates that highly rated corporates aren't subjecting investors to excessive risk.

What does the year ahead hold in the bond landscape? Federal Reserve questions continue to loom, while the health of the dollar and the mounting U.S. government debt also play a role.

Active ETFs have exploded in popularity in recent years, especially since the ETF rule. The rule's streamlining of ETF development and launches has encouraged plenty of new product development.

AI development requires large projects to establish computing power. That in turn requires massive amounts of financing.

In the latest appearance for an American Century Investments leader, Jason Greenblath appeared on the ETF Prime Podcast. Greenblath, vice president, senior portfolio manager and director of Corporate Credit Research for American Century Investments, joined the podcast's host, Nate Geraci, to discuss active fixed income in the near to medium term.

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.