Core Insights - The active bond ETF segment is rapidly growing, with the ALPS/SMITH Core Plus Bond ETF (SMTH) being a notable example, having nearly $2.5 billion in assets under management within just over two years [1] Group 1: Active Bond ETFs - Active bond ETFs generally have higher fees compared to passive counterparts, which can motivate managers to deliver better performance [1] - Morningstar analyst Lan Anh Tran notes that cost compression in passive ETFs makes it challenging for active managers to compete on fees, necessitating greater advantages from active ETFs [1] Group 2: Performance and Risk - Active bond managers have a better chance of outperforming passive peers compared to active equity managers, with a success rate around 50% over longer periods [1] - SMTH maintains a relatively low risk profile, with two-thirds of its holdings rated AA or A, and only 9% rated as junk (BB or B) [1] - Active bond ETF outperformance often comes with higher risk, but a skilled manager can ensure investors are adequately compensated for that risk [1]

Core Insights - The article highlights the expertise of Fred Piard, a quantitative analyst with over 30 years in technology, focusing on data-driven systematic investment strategies since 2010 [1]. Group 1: Expertise and Background - Fred Piard has authored three books and runs an investing group called Quantitative Risk & Value, which focuses on quality dividend stocks and innovative tech companies [1]. - The article emphasizes Piard's extensive experience in technology and investment, showcasing his role as a quantitative analyst and IT professional [1]. Group 2: Investment Strategies - The investing group led by Piard provides various strategies, including market risk indicators, real estate, bond strategies, and income strategies in closed-end funds [1].