Even a global pandemic couldn’t seem to stop the forward momentum and popularity of exchange-traded funds (ETFs), which saw some record-breaking inflows last year.
In our view, ETFs demonstrated their value during this period as a source of price transparency: the bid/offer spread of fixed-income ETFs traded helped investors understand where the underlying bonds should be priced. ETFs also became a source of liquidity for some fixed-income investors during the pandemic, even though in many cases the underlying bonds were not trading. We believe some investors who may not have considered ETFs before are beginning to recognize the potential merits of the ETF structure.
Stephanie Pierce, Chief Executive Officer of Dreyfus, Mellon & Exchange-Traded Funds
Past performance is no guarantee of future results.
All investments involve some level of risk, including loss of principal. Certain investments have specific or unique risks. Any views and opinions are those of the investment manager, unless otherwise noted and is not investment advice.
Recent market risks include pandemic risks related to COVID-19. The effects of COVID-19 have contributed to increased volatility in global markets and will likely affect certain countries, companies, industries and market sectors more dramatically than others.
This material has been provided for informational purposes only and should not be construed as tax advice, investment advice or a recommendation of any particular investment product, strategy, investment manager or account arrangement, and should not serve as a primary basis for investment decisions. Prospective investors should consult a legal, tax or financial professional in order to determine whether any investment product, strategy or service is appropriate for their particular circumstances. Views expressed are those of the author stated and do not reflect views of other managers or the firm overall. Views are current as of the date of this publication and subject to change.
This information contains projections or other forward-looking statements regarding future events, targets or expectations, and is only current as of the date indicated. There is no assurance that such events or expectations will be achieved, and actual results may be significantly different from that shown here. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.
Mellon Investments Corporation (MIC) is a registered investment adviser and subsidiary of The Bank of New York Mellon Corporation (BNY Mellon). MIC is composed of two divisions: Mellon, which specializes in index management, and Dreyfus, which specializes in cash management and ultra-short strategies. Dreyfus is also a division of BNY Mellon Investment Adviser, Inc. (BNYMIA), a registered investment adviser.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.