On June 22, 2023, it was reported that Old Port Advisors had reduced its position in First Trust TCW Opportunistic Fixed Income ETF (NASDAQ:FIXD) by 9.2% during the first quarter of the year. According to a filing with the Securities and Exchange Commission (SEC), Old Port Advisors’ holdings in the company’s stock amounted to 26,761 shares at the end of this period, having sold 2,701 shares.
This move can be seen as part of a broader trend among hedge funds seeking to minimize their exposure to fixed-income assets amidst growing concerns over inflation risks. Indeed, financial markets have been grappling with this issue for some time now as central banks around the world have pumped large amounts of liquidity into their respective economies in order to combat the economic fallout from the COVID-19 pandemic.
As such, investors are becoming increasingly wary of bonds and other fixed-income assets as they worry about rising interest rates eroding their returns over time. In this context, it is not surprising that we are seeing hedge funds like Old Port Advisors reducing their positions in companies like First Trust TCW Opportunistic Fixed Income ETF.
At present, however, there is still considerable demand for these types of assets given their relatively stable yields and capital preservation characteristics compared to other more volatile investments such as equities or cryptocurrencies. Nevertheless, many analysts believe that investors will need to adjust their asset allocations in order to achieve a more balanced risk-return profile going forward.
Ultimately, it remains to be seen how these trends will play out in the months and years ahead as global markets continue to grapple with a host of complex economic challenges on multiple fronts. Nonetheless, one thing is clear: hedge funds like Old Port Advisors will remain at the forefront of this changing landscape as they seek out new opportunities amid ongoing uncertainty and disruption across financial markets worldwide.
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Institutional Investors Increase Stakes in First Trust TCW Opportunistic Fixed Income ETF (FIXD)
The First Trust TCW Opportunistic Fixed Income ETF (FIXD) has been catching the attention of institutional investors and hedge funds recently. As of the fourth quarter of 2022, several institutions added to or reduced their stakes in this actively managed ETF.
Benjamin Edwards Inc., for example, raised its stake by 8.6%, now owning 3,131 shares worth $138,000 after acquiring an additional 247 shares during the period. Similarly, Pinnacle Bancorp Inc. increased its stake by 34% and now owns 1,300 shares worth $57,000.
PNC Financial Services Group Inc. raised its stake in FIXD by 14.5% during the first quarter where it now holds a total of 2,734 shares worth $135,000 with an additional acquisition of 346 shares during the same period.
HCR Wealth Advisors also upped its game by raising its stake in FIXD by almost 1%, owning a total of 46,475 shares valued at $2,041,000 with an additional acquisition of another 409 shares during that period.
Lastly, Archer Investment Corp raised its stake by a mere one percent but owning significant value which is not negligible – they now own over forty-one thousand shares worth $1.81 million.
These recent activities suggest that more investors are warming up to the potential benefits of investing in actively managed bond ETFs like FIXD.
FIXD opened on Thursday at $44.54 and has a fifty-two-week low of $41.85 and a fifty-two week high of $47.75 – giving investors reason to remain optimsimistic on earning returns despite unpredictabilities brought about economic conditions.
Furthermore First Trust TCW Opportunistic Fixed Income ETF which is based on Bloomberg Global Aggregate Bond index boasts active management; broad-based composition and varying maturities while aiming for weighted average duration within one year of the Bloomberg US Aggregate Index.