ETF Edge on investors switching to active and fixed income ETFs

Summary

CNBC ETF Edge discusses the surge in active ETF flows, driven by demand for thematic equities like AI and power infrastructure and for active fixed income in a higher-rate environment. TCW's Jennifer Grancio highlights her firm's active ETFs (AIFD, powered, FLXR, CLLO) as ways to access long-term themes and manage fixed income with alpha. Todd Rosenbluth of VettaFi adds context on options-based ETF innovation and demographic tailwinds for income-oriented products.

• Active ETF flows have jumped from 10% last year to over 40% this year as investors move beyond the Magnificent Seven trade.
• Jennifer Grancio of TCW promotes the firm's AI (AIFD) and Power ETFs as broad thematic vehicles that let active managers outperform across sectors without constant tinkering.
• She also highlights FLXR, a multi-sector fixed income ETF with a 5.44% SEC yield, positioned for higher-for-longer rates and sector rotation into securitized assets.
• Short-duration CLO ETF CLLO is noted as high-quality, higher-return tool for advisers managing rate sensitivity.
• Todd Rosenbluth sees growing adoption of options-based ETFs like QQQI/SPYI and thematic ETFs, and emphasizes demographic demand for income will keep fixed income ETF flows strong.
• Both guests agree that active ETFs allow investors to add alpha or income without needing to micromanage subsectors or daily macro risks.