Rick Rieder Launches His First ETF

The video discusses the current state of the fixed income market, focusing on credit risk and yield curves. It highlights opportunities in European high yield and emerging markets like Mexico and Brazil. The discussion also covers active ETF strategies, emphasizing tactical investments and the importance of being adaptable in the market. The speaker suggests that while US bonds remain a core part of portfolios, international opportunities offer attractive yields, especially when considering currency dynamics.

What is one of the main arguments against high yield investments this year?

• The spreads are not interesting.

• The risk is too high.

• The returns are guaranteed.

• The market is too volatile.

Why is it difficult not to include US bonds in a fixed income portfolio?

• US bonds have the highest yields globally.

• US bonds are the only risk-free investment.

• US bonds offer attractive yields and are a core part of the market.

• US bonds are the only option for international investors.

What is a significant benefit of investing in emerging markets like Mexico and Brazil?

• Guaranteed returns without any risk.

• High local rates with potential currency benefits.

• Complete protection against currency fluctuations.

• No need for portfolio diversification.

What is the primary goal of the active fixed income ETF discussed?

• To replicate the performance of traditional passive ETFs.

• To focus solely on US bonds.

• To provide higher yields by being tactical about exposure.

• To minimize risk by avoiding emerging markets.

How does the active fixed income ETF differ from traditional passive ETFs?

• It focuses only on US bonds.

• It takes a lot of risk and is benchmarked against the universal index.

• It avoids all forms of credit risk.

• It guarantees higher returns than passive ETFs.