Fidelity Institutional
February 18, 2025
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Why active management may be better for bond funds

Key Takeaways

  • Actively managed bond mutual funds and ETFs may deliver higher returns than passive bond funds that are designed to track the performance of an index.
  • Active bond managers may be able to balance risk and return seeking more effectively than passive funds.
  • Actively managed bond funds can take advantage of opportunities created by the size, complexity, and inefficiency of bond markets in ways that passive strategies cannot.
  • Managers of active bond funds may also be able to take advantage of opportunities created by changing interest-rate and credit conditions while passive funds can only seek to track an index.

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