Why this fixed income product could be the next big ETF trend to watch

Summary

CNBC's Dominic Chu interviews TCW's Jennifer Grancio and TMX VettaFi's Todd Rosenbluth about the rapid growth in active fixed income ETFs. Grancio highlights TCW's FLXR flexible income ETF as a multi-sector active fund with a 5.44% yield, and the CLLO CLO ETF for high-quality, short-duration exposure. Rosenbluth notes record fixed income ETF flows and strong demand for active strategies, CLOs, and short-term products, supported by demographics and ETF adoption.

• TCW sees active fixed income as a major opportunity with rates higher for longer.
• FLXR ETF uses active management to rotate into sectors like securitized assets and targets a 5.44% SEC yield.
• CLLO ETF provides high-quality CLO exposure with short duration and elevated income.
• Fixed income ETF flows are on pace for a record year, driven by investor demand.
• Demand is particularly strong for active ETFs, CLOs, and short-duration products.
• Demographic shifts and broader ETF adoption support the long-term income trend.
• TCW focuses on long-only active strategies without derivatives or leverage in fixed income.