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ALPS/SMITH Core Plus Bond ETF highlights active approach as yields stay high

The ALPS/SMITH Core Plus Bond ETF has a 30-day SEC yield of 4.81% and an effective duration of 6.15 years, as volatility in long-dated Treasurys keeps fixed income investors cautious.

Reported · Written up by our desk · ETFs

ETF Trends points to ongoing uncertainty around monetary policy and persistently elevated long-dated U.S. Treasury yields, saying bond investors have faced volatility tied to factors including geopolitical tensions, rising inflation, and higher government issuance.

The article notes the U.S. Treasury is repurchasing government bonds, but frames the broader environment as one where investors may want strategies that can adjust to rapidly changing sentiment rather than relying only on passive exposure.

As an example, ETF Trends highlights the ALPS/SMITH Core Plus Bond ETF, listing assets of $3.01 billion, a 30-day SEC yield of 4.81%, and an effective duration of 6.15 years, and argues its active ETF structure could be more responsive in periods when passive funds may lag.

BNP Paribas is cited in the piece saying an absolute return approach may offer potential value with a focus on downside protection, and it adds that uncertainty over inflation and monetary policy could create room for credit spreads to widen, possibly significantly.

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