Active ETFs are gaining traction, but many misconceptions remain, especially in fixed income. In this episode of Fixing Your Interest, we explore how the ETF market is evolving and delve into active versus passive approaches to the bond market. We look at how ETFs work in practice, what’s driving their wider adoption, and why investors are increasingly looking beyond passive strategies. We also discuss what today’s market backdrop means for fixed income, and how investors can navigate complexity, fragmentation and shifting liquidity dynamics. From This Episode: In this episode, Tina Adatia, Head of Public Strategies EMEA at PIMCO, is joined by Martin Svorc, Portfolio Manager, and Jean Baptiste Faure, ETF Capital Markets Specialist. Together, they unpack how ETFs have evolved from predominantly passive equity tools into more flexible vehicles that can deliver active strategies, particularly in fixed income. The conversation covers how the ETF “wrapper” works, why liquidity in ETFs is often misunderstood, and how structural inefficiencies in bond markets can create opportunities for active managers. The discussion also reflects on the current fixed income environment, including attractive starting yields, global divergence, and the importance of diversification. Key topics include: • What an ETF is and why it should be seen as a wrapper, not a strategy • Why active management matters more in fixed income than equities • Structural inefficiencies in bond markets and how they create opportunities • The role of starting yields and why they look more attractive today • How ETFs can offer liquidity, sometimes even more efficiently than the underlying bonds • How the investor base is evolving, with growing retail adoption • Why diversification and selectivity matter in today’s uncertain environment The discussion and content provided within this podcast is intended for informational purposes only and may not be appropriate for all investors. Reliance upon information provided in a podcast is at the sole responsibility of the listener. The information included herein is not based on any particularized financial situation, or need, and is not intended to be, and should not be construed as, a forecast, research, investment advice or a recommendation for any specific PIMCO or other security, strategy, product or service. Past performance is not a guarantee of future results. All investments contain risk and may lose value. Investors should speak to their financial advisors regarding the investment mix that may be right for them based on their financial situation and investment objective. Podcasts may involve discussions with non-PIMCO personnel and such content contain the current opinions of the speaker but not necessarily those of PIMCO. Other podcasts may consist of audio recording of an existing PIMCO article and such material contains the current opinions of the manager. The opinions expressed in all podcasts are subject to change without notice. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. This is not an offer to any person in any jurisdiction where unlawful or unauthorized. For additional important information go to www.pimco.com/gbl/en/general/legal-pages/podcast-disclosures
