INSTITUTIONAL INSIGHTS

EXPANDING INSTITUTIONAL OPPORTUNITIES

Joyce Choi Equity

In this report, learn why the global bond ETF industry is growing faster than expected. Hint: a key driver of this growth has been the adoption Fixed Income ETFs.

THE BIG PICTURE

The global bond ETF industry is growing faster than we expected.  A key driver of this growth has been the adoption of fixed income ETFs by institutional investors. Based on the resilience and liquidity convincingly demonstrated in the early days of the pandemic, scores of institutions turned to bond ETFs for the first time in 2020.1  Many have since found new ways to use bond ETFs, with their institutional utility underscored by their:​ 

  • Transparency​ 
  • Durable and consistent liquidity​ 
  • Efficiency​ 
  • Precise exposure​

EXPLORE KEY FINDINGS

The 10 largest global asset managers all​ use bond ETFs.2

  
35+

Institutions use iShares® bond ETFs, including 10 central banks.3
80% 

Of the largest U.S. insurers use bond ETFs, and 5 of them adopted bond ETFs after the volatile markets of March 2020.4

EMBRACING INVESTMENT TECHNOLOGY

Fixed income ETFs are a form of investment technology and have​ brought transparency, access, liquidity, and efficiency to​ hundreds of institutions.5  We believe institutional investors​ will continue to adopt and embrace this powerful technology​ and bond ETF innovation will bring to market more precision​ for portfolio construction and risk management. 
ACCESS FULL REPORT​
Related Topics
Equity
Fixed Income

Joyce Choi

iShares Fixed Income Product Strategy Team