Bond ETF Strategies: Active vs. Index, Credit vs. Safety

Bond investors are divided on positioning due to the Fed's potential rate cut this week. Jeffrey Sherman, deputy CIO at DoubleLine, advocates for active bond picking, citing rich valuations in investment-grade and high-yield bonds. Jim Bianco, president of Bianco Research, recommends underweighting credit and overweighting safety due to stock market concerns and the potential for a correction that impacts corporate bonds. Michael Arone, chief investment strategist at State Street, prefers active management for fixed income exposure.