The strategic asset allocation reset

With the thunderous volatility in markets and extraordinary levels of policy intervention, BlackRock’s ETF business iShares is seeing ~70% of fund flows heading into fixed income products, predominantly within the corporate bond and high yield sub-sectors. And it’s easy to see why this trend is emerging: investors want less volatility than equities, but higher returns than government bonds. 

For BlackRock’s asset allocation team, COVID-19 has forced a reset in its own strategic asset allocation thinking. Here, Blair Hannon, ETF Specialist at BlackRock discusses that reset and covers BlackRock’s positioning within developed and emerging market equities and fixed income, and why inflation-linked bonds may be one of the best opportunities around at present. 

Look at Fixed Income in a new way

To learn more about benefits of fixed income ETFs and the role they can play in a portfolio click here.