Fixed income ETFs drop to 16 percent of total assets, Eric Balchunas notes

Fixed income ETFs drop to 16 percent of total assets, Eric Balchunas notes
Equities surge as fixed income ETFs decline

Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, observes a significant shift in asset allocation within ETFs.

Equities now account for 80 percent of ETF assets, with fixed income ETFs declining to just 16 percent from 23 percent in 2020. Additionally, fixed income makes up only 10 percent of new ETF launches, while alternative strategies such as buffer funds, covered call products, and gold or BTC ETFs are increasingly present.

Balchunas has tracked other developments in the ETF space this year. He reported that IBIT has narrowly surpassed VOO since its inception, despite experiencing greater market volatility. Earlier, he highlighted Vanguard's acquisition of Altruist, making it a custodian for the first time and expanding its position in low-cost advisory services.

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