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Passive investing has historically been more associated with equities than with #FixedIncome, but recent data indicates a change could be in the winds 👉 https://lnkd.in/eixPPeGh S&P Dow Jones Indices' Tim Edwards and Anu Ganti take a closer look at what’s driving the shift and what a passive transformation could mean for fixed income markets.

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Passive investing has historically been more associated with equities than with fixed income. Some say that the bond markets are fundamentally more suited to active management. However, more recent data indicates that a change could be in the winds. So what might the fixed income markets learn from the half century story of growth in passive equities? And what do our Spieva store cards have to tell us about the current environment for index active in bonds? Hello, I'm Tim Edwards of S&P Dow Jones. This season I'm joined by my colleague Andrew Ganti to explore fixed incomes, passive potential, and what Esop's famous fable about the hair and the tortoise has to do with it. Thanks for joining me today, Annu. Absolutely, it's great to be here. So First off, why the hair and the tortoise? It's a great question because if you think about this analogy, there's so many different ways to interpret this, and I'll give you a couple of examples. One is you can think of equities as the hair and fixed income as the tortoise. Another way to think about it is you think, think of it. Collective as the hair and passive as the tortoise, right. And you put those together. And we, when we started out producing this paper, we knew that indexing and fixed income came later to fixed income than in equities. But what was surprising to us when was looking at the growth rate of indexing and fixed income, because if you look at it over the past 10 years, the growth has actually outpaced that of equities, which is pretty fascinating to to think about And coming back to the analogy of the hair and the tortoise. Well, we know how the race ended, that the tortoise won the race at the end by sticking to its goal. So we'll be watching to see if that is the case for indexing and fixed income because there's plenty of potential here for future growth. So starting, starting slowly, but maybe steadily getting, getting slightly closer at least. I mean, the, the fixed income markets are very different overall. There are differences when you look at the relative potential advantages of active and passive investing. Just highlights, what are the main differences or the differences that you you looked at in terms of equities versus fixed income?

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