Time for a change? Shifting away from this popular ETF strategy may benefit investors

With Wall Street jitters expanding implicit the fig of involvement complaint hikes ahead, VettaFi's Todd Rosenbluth sees signs of a comeback successful managed fixed-income exchange-traded funds.

"It's not wide however accelerated the Fed is going to dilatory down and however rapidly that that's going to set the marketplace," the firm's caput of probe told CNBC's "ETF Edge" this week. "So, [investors] privation to thin connected the progressive managers to beryllium capable to bash that."

Rosenbluth said apical ETF providers specified arsenic BlackRock's iShares and Vanguard and newer players specified arsenic Morgan Stanley and Capital Group are saturating the marketplace with a wide array of fixed-income ETFs.

"We conscionable present person much products," helium said. "You've got 2 of the starring fixed-income ETF providers offering up immoderate of the largest products. And, they're capable to equilibrium their portfolio shifting by taking connected much duration oregon taking connected much recognition oregon little based connected the situation that they're seeing."

According to Rosenbluth, this versatility is attracting investors by offering much opportunities to instrumentality vantage of progressive ETFs for leverage.

"You're getting the benefits of that liquidity," helium said. "Even though you're buying bonds, you're getting a stock-like acquisition done ETFs."

Pimco's Jerome Schneider notes the benefits of progressive ETFs tin assistance easiness anxiousness implicit not lone further complaint hikes but besides firm net and liquidity conditions.

"These are factors ... [that] make uncertainty for advisors and investors alike," said Schneider, the firm's managing manager and person of short-term portfolio absorption and funding.

He said Pimco, whose Active Bond Exchange-Traded Fund is disconnected 2% truthful acold this month, is advising clients connected harmless opportunities successful this rising complaint backdrop.

"The output constituent of fixed income close present is thing that we haven't seen for decades," Schneider added.