Fixed Income
Chart of the Month:
February 2023

The Rise of Passive Bond Investments

More investors are favoring passively-managed bond strategies, as evidenced by the growth in bond funds and ETFs over the past two decades. We believe that passive index investing is difficult in the bond market. Unlike stocks, most bond indices have thousands of securities and cannot be replicated in a passive investment. For example, the Bloomberg U.S. Aggregate and Bloomberg Municipal Bond indices hold 13,000 and 56,000 securities, respectively. Most investors are familiar with passive investing in stocks, but many are unaware of the rise of passive investing in bonds.  

Passive Bond Investments Reached 38% in 2022, Up Nearly 50% Since 2017

Data as of 12/31/22. Source: Bloomberg.

  • As investments in bond funds and ETFs continue to grow, more investors are favoring passive bond funds.
  • The combined AUM of bond funds and ETFs was $5.2 trillion as of December 2022.
  • The percentage of passive bond fund and ETF investments reached 38% in 2022, growing nearly 50% since 2017.

Learn more about SBH’s Fixed Income Strategies.

How Can We Help You?

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.

How Can We Help You?

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.

You are now leaving the SBH main website and entering the SBH Mutual Funds portion. Please note that the SBH main website window will remain open.

How Can We Help You?

We’d love to hear from you and answer any questions you may have about Segall Bryant & Hamill.  You can reach us by submitting this form, by calling (800) 836-4265, or by emailing us at contactus@sbhic.com. We look forward to hearing from you.

"*" indicates required fields

Name*
What type of investor are you?*
This field is for validation purposes and should be left unchanged.

You are now leaving the SBH main website and entering the SBH Mutual Funds portion. Please note that the SBH main website window will remain open.