Group 1 - The focus of the portfolio is on fixed income, targeting yields exceeding 6% while ensuring a healthy risk/reward ratio [1] - The Investment Doctor emphasizes a diversified portfolio consisting of both dividend and growth stocks, particularly in the European small-cap sector [1] - The investment group European Small Cap Ideas provides exclusive research on European investment opportunities, highlighting high-quality small-cap ideas for capital gains and dividend income [1] Group 2 - The European Small Cap Ideas portfolio includes two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1] - An active chat room is available for discussions on the latest developments regarding portfolio holdings [1]

Core Viewpoint - Invesco Ltd. has launched four new fixed income ETFs to enhance its existing lineup, addressing current investment challenges such as interest rate uncertainty and the need for diversified income [1] Group 1: New ETF Launches - The newly launched ETFs include: Invesco U.S. Hybrid Bond ETF (HBRD), Invesco MSCI Treasury Duration Rotation ETF (TROT), Invesco Agency MBS ETF (IMTG), and Invesco Flexible Income ETF (FLXI) [1] - These ETFs are designed to provide investors with practical solutions for accessing duration, diversifying income, and managing risk in changing market conditions [1] Group 2: Investment Strategies - IMTG is an actively managed ETF focusing on high-quality income through agency mortgage-backed securities, emphasizing liquidity and risk management [1] - FLXI employs a global, multisector bond strategy to offer diversified income with moderate volatility [1] - HBRD is a passively managed ETF that tracks the ICE USD Developed Markets Corporate Ex-Banks Hybrid Bond 4.65% Constrained Index, aiming for differentiated income potential [1] - TROT tracks the MSCI U.S. Treasury Duration Rotation Select Bond Index, designed to help investors navigate shifting interest rate environments [1] Group 3: Invesco's Expertise - Invesco's fixed income team consists of 182 members with an average of 18 years of industry experience, overseeing a wide range of portfolios [1] - The firm has nearly two decades of experience in offering fixed income ETFs, with many having track records exceeding five years [1] - Invesco manages over $500 billion in assets across various investment vehicles, reinforcing its capability in the fixed income market [1]

Core Insights - USAdvisors Wealth Management, LLC has reduced its position in First Trust Smith Opportunistic Fixed Income ETF (FIXD) by 86,075 shares, resulting in a quarter-end value decline of $3.8 million due to trading and share price movements [2][9]. ETF Overview - The First Trust TCW Opportunistic Fixed Income ETF has a market capitalization of $3.47 billion and employs an active management strategy targeting a broad range of fixed income securities to generate risk-adjusted returns and income [6][8]. - As of February 4, 2026, FIXD shares were priced at $44.15, with a dividend yield of 4.5% and a 1-year total return of 7.0%, underperforming the S&P 500 by 8.4 percentage points [4][7]. Investment Strategy - The investment strategy of FIXD focuses on opportunistic allocation across fixed-income sectors, aiming to maximize total return through a mix of investment-grade and below-investment-grade debt securities [8]. - The portfolio composition mandates at least 80% allocation to fixed income securities, with up to 35% in corporate, non-U.S., and non-agency debt rated below investment grade or of comparable quality [8]. Implications for Investors - Following the reduction in FIXD holdings, USAdvisors now holds 0.2% of its 13F reportable AUM in FIXD, while increasing its position in the Fidelity Total Bond Index ETF, indicating a strategic shift towards lower-fee options [7][10]. - The performance of FIXD has been marginally better than FBND, which offers lower fees, raising questions about the value of its actively managed strategy [10].

Core Insights - ProShares has launched the first money market ETF structured to comply with the GENIUS Act, which is expected to attract a wide range of market participants [1][2] Group 1: ETF Features and Target Audience - The ProShares GENIUS Money Market ETF (IQMM) is designed to appeal to institutional investors, stablecoin treasury managers, financial advisors, and individual investors [2] - The ETF adopts a conservative cash management approach, combining the stability of treasury-focused money market funds with the flexibility of an ETF [3] - IQMM is specifically structured to meet the strict criteria of the GENIUS Act, making it suitable for investment by stablecoin reserve managers [4] Group 2: Liquidity and Cash Management - The ETF offers intraday trading and weekly cash distributions, enhancing liquidity management for both individual and institutional investors [5] - For stablecoin issuers and institutional clients, the fund features a dual net asset value structure and same-day settlement options, providing greater flexibility in managing treasury and reserve assets [5] Group 3: Investment Strategy and Yield Potential - The fund aims to provide potentially higher yields than traditional bank deposits or idle cash balances, depending on prevailing interest rates, while focusing on capital preservation and minimizing credit risk through short-term U.S. Treasuries [6] - The IQMM ETF represents a significant development in the integration of regulated digital asset infrastructure with traditional fixed income investment products [7]

Core Insights - The article discusses the Avantis Core Fixed Income ETF (AVIG) as a solution for investors facing uncertainty in interest rates and fixed income allocations in 2026 [1] - AVIG employs a systematic active approach, investing in bonds from both U.S. and non-U.S. issuers, including corporations, governments, and government agencies [1] - The fund charges a low fee of 15 basis points and has demonstrated strong performance, returning 7.9% over the past year compared to the category average of 6.7% [1] Investment Strategy - AVIG focuses on bonds with high expected returns, utilizing an analytical framework that evaluates expected income and capital appreciation [1] - The fund's managers assess bonds based on various metrics such as credit rating, duration, currency, yield, and option-adjusted spreads [1] - AVIG may also invest in credit default swaps and total return swaps as necessary to enhance returns [1] Portfolio Role - AVIG offers active flexibility, allowing it to adapt to market changes, unlike passive core bond funds that must strictly track their indices [1] - This flexibility is crucial in scenarios where passive funds may face challenges, such as early bond calls or defaults, which they cannot quickly replace [1] - For investors seeking improved fixed income performance, AVIG presents an upgrade opportunity over traditional passive core bond allocations [1]

Core Viewpoint - Symmetry Partners, LLC has initiated a significant position in the Dimensional Global Core Plus Fixed Income ETF, acquiring 2,471,670 shares valued at approximately $133.64 million, which now represents 7.91% of their reportable assets under management [2][3][6] ETF Overview - The Dimensional Global Core Plus Fixed Income ETF provides access to a diversified range of global fixed income markets, including government, corporate, and securitized sectors [5][7] - As of January 26, 2026, the ETF has an asset under management (AUM) of $2.12 billion and a share price of $54.43 [4] - The ETF offers a trailing twelve-month dividend yield of 3.43% and a one-year total return of 5.89% [4][3] Investment Strategy - The ETF's strategy focuses on broad exposure to global investment-grade and select lower-rated debt securities, aiming for total return through diversified fixed income allocations [7][8] - The fund is actively managed, which allows for a research-focused approach rather than passive index tracking [8][9] Performance and Holdings - The ETF's performance has underperformed the S&P 500 by 7.38 percentage points over the past year, with a total return of 5.9% [3] - Despite its relatively short track record since inception in 2023, the ETF has attracted significant investment interest, indicating confidence from investors like Symmetry Partners [9][10] Investor Implications - The substantial investment by Symmetry Partners has made the Dimensional Global Core Plus Fixed Income ETF their second-largest holding, reflecting strong conviction in its potential [6][8] - The ETF may be appealing to investors seeking to complement equity holdings with steady income as part of a diversified portfolio [10]

Core Insights - The JPMorgan Short Duration Core Plus ETF (JSCP) employs a multi-sector, short-maturity fixed income portfolio strategy focused on investment-grade U.S. rate and credit markets, with the flexibility to include non-investment-grade and securitized sectors when justified by compensation [1] Portfolio Construction Methodology - The eligible instruments for the portfolio include Treasuries, agencies, corporates, mortgage- and asset-backed securities, as well as select high yield and emerging-markets exposures, utilizing derivatives for efficient implementation of curve, credit, and currency strategies [1] - Security selection combines top-down duration/curve and sector budgeting with bottom-up analysis of issuers, structures, and collateral, aiming for stable carry and controlled drawdown risk [1] - The portfolio construction emphasizes broad diversification, tight liquidity management, and a shorter duration profile to mitigate sensitivity to interest rate changes, with issuer/sector and risk-budget caps to limit concentration [1] - Active rotation across curves and spreads is reflected in turnover, with adjustments made based on spread normalization, deteriorating credit metrics, adverse technicals, or liquidity re-optimization [1]

Core View - Hartford Total Return Bond ETF (HTRB) aims to provide diversified, actively managed exposure to U.S. fixed income with a focus on competitive total return and income [1] Investment Strategy - The portfolio combines top-down rate, curve, and sector views with bottom-up security selection across investment-grade corporates, Treasuries, and securitized markets [1] - There is flexibility to allocate to out-of-benchmark segments when risk-reward is favorable [1] - Duration and yield-curve positioning are utilized to balance interest-rate sensitivity against credit spread opportunities [1] - Broad sector rotation is employed to seek multiple sources of return rather than relying on a single investment [1] Target Audience - Likely users include asset allocators seeking a core bond solution and income-oriented investors emphasizing diversification [1] Risk Considerations - Active positioning and broad latitude can lead to increased turnover and tracking variability compared to broad aggregates [1]

Core Insights - Fixed income ETFs had a record-breaking year in 2025, with inflows rising 45% to $437 billion from $300 billion in 2024, driven by macroeconomic uncertainties and falling interest rates [3][2] - Morningstar predicts that fixed income ETFs will continue to gain market share, potentially reaching 33% of the bond fund market by the end of 2026, as they have been gaining an average of 2% market share per year since November 2015 [4][5] - The demand for short-term bond ETFs is expected to increase as they offer competitive yields compared to traditional money market accounts, appealing to investors seeking better returns on cash [6][7] Market Trends - In 2025, nearly 150 new fixed income ETF products were launched, indicating a growing interest in active management within the fixed income space [2] - Broad-based fixed income ETFs, such as the iShares Core U.S. Aggregate Bond ETF (AGG) and the Vanguard Total Bond Market ETF (BND), attracted significant inflows, with $177 billion reported [8] - Active ETFs are gaining traction, with funds like the Eaton Vance Total Return Bond ETF (EVTR), JPMorgan Income ETF (JPIE), and PIMCO Multisector Bond Active ETF (PYLD) being highlighted for their potential to outperform traditional indices [9] Future Outlook - The fixed income ETF market is expected to remain dynamic in 2026, with continued investor interest in both broad-based and actively managed funds [10] - The current low-interest-rate environment from banks is likely to drive more investors towards short-term bond ETFs as a means of earning higher yields [7]

Report Industry Investment Rating - Not provided in the given content Core Viewpoints - Asian fixed - rate IG credits tightened by 1 - 4bps this morning. Some bonds like VLLPM 29 were down, while PMBROV 30 recovered [3] - The FV of the new SUNHKC 29 is expected to be mid - 6% compared to an IPT of 6.75% [3][7] - Yuexiu REIT is gauging investor interest in USD/CNH bonds to refinance USD400mn YXREIT 2.65 02/02/26 [3][17] Summary by Directory Trading Desk Comments - Yesterday, new POHANG 31 - 36s/SKBTAM 29 tightened 3 - 5bps due to buying from Chinese onshore accounts, and new CSILTD Float 31 widened 1bp. Chinese IG credits tightened 1 - 3bps overall, with strong buying in beta names. Some bonds like EHICAR 26 - 27 were down, while NWDEVL/VDNWDL complex rose [2] - In Chinese properties, VNKRLE 27 - 29 were down, and Vanke proposed revised terms for its onshore bond. FUTLAN 28/FTLNHD 26 - 27 had mixed performance [2] - In JP space, SUMIBK/MUFG 5yr FRNs tightened. In SE Asia, BBLTB subs tightened, and GARUDA 31s surged. In the Middle East, FABUH 31s had block - size trading but closed unchanged. In AU space, CRNAU 29/PMBROV 30 were down [2] Macro News Recap - On Wednesday, S&P (-0.19%), Dow (-0.80%), and Nasdaq (-0.10%) were lower. US approved Nvidia H200 chip exports to China with conditions. UST yield was lower, with 2/5/10/30 - year yield at 3.53%/3.75%/4.18%/4.83% [6] Desk Analyst Comments - Sun Hung Kai proposes to issue a 3yr USD senior unsecured bond. The FV of the new SUNHKC 29 is seen as mid - 6% vs IPT at 6.75%, considering peer valuation and tenor differential [7] - Proceeds from the new issue will fund a tender offer for SUNHKC 5 09/07/26 and for general working capital. The tender price is at par, and SHK may prioritize allocation to tendering bondholders. Tender offer settlement depends on new bond issue settlement [8] - SHK is 74.6% - owned by Allied Group and ultimately by Lee and Lee Trust. It has businesses in credit, investment management, and fund management. In 1H25, it had a 43.5% yoy income increase, with credit and fund management contributing 62% of total income [9] - In 1H25, pre - tax profit increased, ROE rose, and leverage metrics improved. As of Jun'25, it had cash of HKD2.8bn and total debts of HKD11.0bn, with 52% due within one year [10] Offshore Asia New Issues - No offshore Asia new issues were priced today [14] - ANZ New Zealand (Int'l) London Branch and Sun Hung Kai are in the pipeline for new issues, with ANZ having 3yr/5yr options and Sun Hung Kai a 3yr bond at 6.75% [15] News and Market Color - Yesterday, 112 onshore credit bonds were issued with an amount of RMB107bn. Month - to - date, 645 credit bonds were issued, raising RMB517bn, a 20.3% yoy decrease [16] - Biocon's INR41.5bn QIP attracted 4x demand. CAS accepted USD580.629mn of CASHLD 4 Perp in a tender offer. Piramal Finance raised USD350mn. SJM accepted USD170.115mn of SJMHOL 4.5 01/27/2026 in a tender offer [16] - Vanke proposed revised terms for an onshore bond extension, and Yuexiu REIT is gauging investor interest in bonds for refinancing [16][17] Top Performers and Underperformers - Top performers include NWDEVL and GARUDA bonds with significant price increases, while top underperformers like CRNAU, ARAMCO, and PMBROV bonds had price drops [4]