Fixed Income

Philosophically, our approach to fixed income is that investors are typically not compensated adequately enough for gaining too much exposure to fixed income’s two main risk factors—maturity and credit risk. Particularly in today’s historically low interest rate environment with interest rates potentially rising, we believe investors are best served by a passive, laddered maturity approach to constructing a bond portfolio. This can now be done by using low-cost, “bullet structured” ETFs that contain highly diversified investment grades bonds where the ETF will actually mature in a given year and principal can be rolled out to a longer-dated ETF. We use these in conjunction with other actively and passively managed ETFs and Funds.