Core Insights - The SEC ETF rule in 2019 has expanded the operational flexibility of ETFs, allowing them to encompass a wider range of strategies beyond traditional passive approaches [1] - Active bond ETFs have emerged as significant competitors to traditional bond strategies, offering lower fees and greater accessibility to active fixed income managers [2] Group 1: Active Bond ETFs - The ASHare total return active ETF, ticker BRT, is leveraging BlackRock's Active Fixed Income Organization and has shown strong performance [3][5] - The management team for BRT, led by Rick Reer and Chan, has extensive experience and utilizes top-down sector allocation and interest rate calls [4] - BRT outperformed its category average and index by 45 and 49 basis points respectively from January to August 2025 [6] Group 2: Dimensional Core Fixed Income ETF (DFC) - DFC aims to outperform the market by strategically positioning its duration and credit risk profile, focusing on bonds with the best return potential [6][7] - The fund has a systematic approach to credit risk, adjusting bond credit ratings based on market conditions, and has outperformed its index by 71 basis points from January to November 2024 [9] - DFC maintains a close composition to the US aggregate bond index and employs a flexible trading philosophy, contributing to its competitive edge [10][11] Group 3: DoubleLine Opportunistic Core Bond ETF (DBND) - DBND is managed by experienced professionals Jeffrey Gunlock and Jeffrey Sherman, focusing on securitized and emerging market debts [12][14] - The ETF's process includes a monthly asset allocation committee that guides sector allocation and risk, leading to strong performance [12][15] - DBND outperformed its category index by 57 basis points annually from March 2022 to August 2025, benefiting from shorter duration and effective credit risk selection [15]

Core Insights - The Federal Reserve has implemented two interest rate cuts in 2023, which is expected to positively impact actively managed bond ETFs like the Neuberger Berman Total Return Bond ETF (NBTR) [1][2] - NBTR, approaching its two-year anniversary, has outperformed the Bloomberg U.S. Aggregate Bond Index, with a year-to-date gain of approximately 8% compared to the index's gain of slightly over 7% [2] - Goldman Sachs Asset Management anticipates further rate cuts by the Fed, predicting a 25 basis point cut in both October and December, followed by two additional cuts in 2026 [3][4] Fund Performance and Strategy - NBTR's active management strategy is highlighted as a key differentiator in its performance this year, with expectations for continued strong performance into 2026 [2] - The fund has a 30-day SEC yield of nearly 5% and a duration of 5.85 years, positioning it in the intermediate-term bond category, which may attract more investors due to its compelling yields [6] Market Context - The potential end of the longest government shutdown on record could benefit active fixed income ETFs, including NBTR, although the Federal Reserve's actions remain a significant factor [3] - Historical trends suggest that the dollar may stabilize following the start of Fed easing cycles, which could make dollar-denominated debt, including bonds in NBTR, more attractive to global investors [5]