Vanguard Core Bond ETF

VCRB

Market cap $4.37B

The same macro factors affecting the equities market, such as tariffs, geopolitical factors, and a changing interest rate policy are also affecting the fixed income markets. With that, there's never been a better time to access active fixed income strategies that help advisors and investors navigate the murky macro environment.

Stocks might still be the preferred investment of choice. But exchange traded funds (ETFs) are quickly gaining ground.

Advisors may sometimes feel like they're venturing out to solve the world's personal financial problems alone. This applies to entrepreneurs managing their own firms and intrapreneurs who are part of an existing firm.

As noted by TMX VettaFi Head of Research Todd Rosenbluth, fixed income ETFs are having a banner year amid record inflows. The Vanguard Total Bond Market ETF (BND) and Vanguard Total International Bond ETF (BNDX) were two of the top funds responsible for the $325 billion in net inflows (as of October 15).

The U.S. Federal Reserve instituted its first interest rate cut of the year, which could force investors to reassess their fixed income portfolios to plan for further monetary policy changes. Given this, it's an opportune time to consider using more flexible active funds in order to mute any rate cut noise.

It might be auspicious timing that the VettaFi Q3 Fixed Income Symposium came less than 24 hours after the Federal Reserve instituted the first rate cut of the year. With that, investors must know how to navigate the current fixed income environment in which a Fed is easing monetary policy.

The allocation into fixed income isn't just happening on a retail level. Increasingly, more allocation is happening with asset managers, including heightened interest in active management.

Approximately 500 new ETFs launched year-to-date through mid July, according to FactSet. This is significantly more than the approximately 300 at this point a year earlier.

One of the prevailing trends in the ETF industry has been the proliferation of active funds. Based on results from Trackinsight's Global ETF Survey 2025.

With tariff news providing constant equity market fluctuations, the case for bonds becomes more compelling. The added uncertainty also punctuates the need for an active management strategy, which one particular Vanguard ETF offers.