23rd July 2026
BNP Paribas: Fixed income ETFs: Simple, transparent, low-cost beta exposure
Despite trebling in size since 2020, fixed income ETF (exchange-traded fund) assets remain under-bought in Europe. Luca Pagni, Head of Fixed Income ETFs, tells Daniel Morris, Chief Market Strategist, that there is still great growth potential for bond ETFs – for a variety of reasons. They can improve portfolio construction by offering low-cost beta exposure, diversification, faster and simpler execution, and better liquidity than direct bond portfolios.
Investment decisions involving fixed income ETFs can be made almost instantaneously, compared to days for a portfolio of selected bonds. “ETFs have also created a liquidity revolution in fixed income. You can get reliable around-the-clock pricing on almost every segment of the bond market. Just think what that means in terms of execution capacity and price discovery.”

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