The majority of wealth managers and institutional investors believe flows into fixed income exchange traded funds in 2020 will outstrip those seen last year, according to research from Tabula.
The research found 64% of professional investors expect a slight increase in flows into the products, while 24% believe fixed income ETF flows will increase dramatically in 2020.
When questioned as to the reasons why they anticipate further popularity, 70% said it is likely to be a result of more fixed income ETFs being listed during the year.
More than half said it will be because of greater innovation in the sector, with new products offering access to more parts of the fixed income market.
Meanwhile, just one in three attributed the anticipated rise in fund flows to "sector rebalancing", with ETFs being under-utilised by investors within the fixed income sector.
Jason Smith, who has been newly-appointed as CIO at Tabula, said: "Last year saw record flows into fixed income ETFs, and our research suggests 2020 could be another record year. There is growing demand from investors for new innovative solutions that offer real and very specific solutions."
Smith joins Tabula in the newly created role from Goldman Sachs Asset Management where he was a senior portfolio manager focused on a variety of fixed income portfolios including rates, inflation, LDI and secured finance.