Market volatility sparked by recent trade policy changes has been a bane for equity investors, especially those entrenched in United States markets. But the turmoil has also offered opportunity for asset management firms to promote a blossoming product type: Bond ETFs.
Unlike 2022, when bonds moved in tandem with equities and failed to act as the buffer against volatility they historically have been during market selloffs, asset managers are asserting that bonds have regained their hedging position. And in a market where ETFs are gaining an ever greater portion of invested funds thanks to the wrapper’s transparency, efficiency and liquidity, asset management firms are touting this moment as one for advisors to steer clients towards bond ETFs. And it seems some are taking notice: In April, even as bond mutual funds lost $60 billion amid market turbulence, bond ETFs enjoyed $10 billion inflows.
The insight page of asset managers’ advisor sites offer a place for firms to position themselves as a source of education for advisors. By publishing thought leadership pieces on current market trends, like volatility and the tariffs that caused it, asset managers can establish themselves as a trusted voice in the space, increasing the likelihood of an advisor seeking out their funds when searching to fill a client need. Releasing insights about a product type couched in current market conditions, and indeed directly promoting applicable funds in the process, only furthers this benefit and may be an underused resource by asset managers hoping to grow their market share. As Corporate Insight found in its 2024 report surveying financial advisors, 81% of advisors found new funds for client investment through financial websites or newsletters, further highlighting the importance of firms establishing themselves as a trusted information source.
In recent months, BlackRock has published extensively on BlackRock Advisor Center about the tariff-induced volatility and what that means for investors seeking fixed income. Each of these thought leadership pieces includes promoted funds, with some explicitly advertising funds in the article’s body following an argument for their incorporation in a client’s portfolio. “For advisors seeking to reduce drawdown risk and boost income, bond ETFs can support these goals,” BlackRock says in one such article.
Vanguard has similarly published commentaries following the trade war on its Insights page for financial professionals, promoting fixed income as a hedge against volatility. Though not included in the same article, the firm had previously published thought leadership pieces promoting bond ETFs, notably a new actively managed bond ETF, which tariff articles seemed to reference, stating that the firm’s “active portfolios were well-prepared, having trimmed credit risk and moved up in quality.” Vanguard’s new active bond ETF is also a short duration bond ETF, which Vanguard, along with other firms, is promoting as a way to get the benefits of fixed income without exposing oneself to longer-term impacts of inflation or fed rate changes.
CI’s Asset Management Monitor – Advisor year-end Commentary Analysis report reveals not just the trends in asset managers’ commentaries, but the frequency of publication and how firms are using commentaries to promote their funds. As the marketplace continues to become more competitive for asset management firms, the Commentary Tracking report could help those looking to overhaul their insight production and provide advisors a calling card for their products. Asset Management Monitor – Advisor subscribers can look forward to that report at the end of 2025. Learn more here about CI’s asset management research and download a research sample.
Tim Drugan
Tim Drugan is an analyst on CI's asset management research team.