Joe gold barclays capital aggregate bond index

Is There a Better Investor Solution than the Fixed Income Index?

Passive fixed income solutions, once perceived to be the answer to low risk investing, are no longer holding up against a changed market landscape.

Interest rates – already in a downward trend for 40 years – are approaching zero. Rates have been driven down by consumer deleveraging during the financial crisis and the Federal Reserve’s newest version of quantitative easing.

Joe gold barclays capital aggregate bond index chart

Fixed income, once a source of income, liquidity, and capital preservation, is now a reach for yield and the hope of some mediocre cash flow. Though traditionally told to “wait it out” during down markets, investors that want exposure to fixed income via traditional methods such as 60/40 balanced funds, target-date funds, or index funds, now require a different approach.

The risk of complacent investing is no more evident than those using index or beta products for their fixed income allocation. At Build Asset Management, we b