Northern Trust has rolled out a new suite of FlexShares ETFs on NYSE Arca providing low-cost core portfolio exposures with improved ESG scores and reduced carbon risk compared to traditional broad market benchmarks. Christopher Huemmer, Senior Investment Strategist for FlexShares ETFs, said: “In response to heightened client demand for climate investing, we created this new suite to offer core investment strategies that we believe are better positioned to benefit from the ongoing transition to a low-carbon economy.”

European fixed income ETF provider Tabula Investment Management has launched Europe’s first ETF providing sustainable exposure to high yield corporate bonds from the Asia ex-Japan region.

KraneShares has teamed up with Nikko Asset Management to introduce the KraneShares Asia Pacific High Yield Bond ETF (KHYB US), an actively managed fixed income ETF on NYSE Arca targeting opportunities in Asia Pacific’s high-yield bond market.

DriveWealth has made its ETF debut with the launch of two actively managed fixed income funds in partnership with YieldX that use AI to deliver a pre-determined level of yield while seeking to minimize portfolio risk.

The Federal Reserve has announced plans to start selling its holdings of corporate bond ETFs as it begins to wind down some of the emergency measures implemented during the height of the Covid-19 market volatility.

Amundi has revealed plans to expand its environmental, social and governance (ESG) product suite with the transition of six regular fixed income ETFs into equivalent ESG exposures in the coming weeks.

By Salvatore J. Bruno, Chief Investment Officer; and Kelly Ye, Director of Research at IndexIQ.

The past year saw high yield bonds rally strongly in the wake of March’s Covid-driven selloff as growth rebounded and a widely expected wave of corporate bankruptcies failed to materialize.

WisdomTree has launched a new ETF in the US providing exposure to alternative credit.

Premia Partners has launched two new China-focused fixed income ETFs on the Stock Exchange of Hong Kong.

By Fran Rodilosso, Head of Fixed Income ETF Portfolio Management at VanEck.

Emerging market bonds historically do well in rising rate environments—particularly when rates rise due to higher growth prospects rather than a taper tantrum.