Indexing in fixed income appeals to investors for many of the same reasons it appeals in equity:
diversified, transparent, and cost-effective exposure
simplifying both governance and manager oversight thereby offering a very strong value proposition
Today's ultra-low rate and spread environment, means fees have a larger impact on yields and returns, making fixed income indexing's cost-effectiveness more attractive than ever.
Index strategies are increasingly seen as a complement to active strategies, given their broader, less concentrated portfolios and consequently higher liquidity. This provides investors with greater flexibility and choice in their asset allocations.
To learn more about how State Street Global Advisors’ can help you get the best from your fixed income index investing, download the full article.
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