What does the year ahead hold in the bond landscape? Federal Reserve questions continue to loom, while the health of the dollar and the mounting U.S. government debt also play a role. Uncertainty is the name of the game when it comes to navigating fixed income and bonds, leaving investors with important questions. KORP can answer and stand out in that uncertain 2026 bond outlook.
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Right now, investors and advisors may be on the lookout for yield without adding too much duration risk. Credit quality, too, always requires careful scrutiny, as the overall bond market has brought fixed income to the forefront of investors’ minds.
Per American Century Investments’ analysis, the combination of high government spending and debt, volatile rates, and stubborn inflation in the 2026 bond outlook underscores the need to be “opportunistic.”
What Does the 2026 Bond Outlook Hold for KORP?
An active bond ETF approach like that found in KORP can help. KORP, the American Century Diversified Corporate Bond ETF, charges a 29-basis-point (bps) fee for its strategy. The active bond ETF looks to provide income and yield via its U.S. corporate debt exposures. That active approach offers a dynamic allocation between investment-grade and high-yield assets.
Together, that has helped the fund return 8.5% over the last year, according to ETF Database data, beating its Corporate Bonds ETF Database Category average in that time. According to American Century Investments data, the fund has provided a 12-month distribution rate of 4.96% as of January 30th.
The strategy, then, could make it a solid satellite edition to portfolios. Especially as government and geopolitical risks continue to loom over bonds and the broader fixed income landscape, the ease of use of the ETF wrapper can be appealing. Its active management offers notable flexibility in turbulent times, which, when combined with its diversified remit, could make it an active bond ETF to watch.
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