The Markets May 20, 2025

Surge in Bond ETFs Driven by Institutional Investors

According to BlackRock , actively managed strategies currently account for 14% of U.S. fixed-income ETF assets under management and 8% of total U.S. ETF assets.

Reported by

Bond exchange-traded funds have been racking up investment inflows over the last few years and continue to gather steam, thanks in large part to institutional investors, according to BlackRock. The asset management giant forecasted bond ETF assets to more than triple, to $6 trillion worldwide, by the end of the decade.

According to a BlackRock report, it took 17 years for bond ETF assets to reach $1 trillion in 2019 and then just another five years for that figure to climb to $1.7 trillion as of the end of September 2024.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

“The global bond ETF industry is growing faster than expected,” the report stated. “A key driver of this growth has been the adoption of fixed-income ETFs by institutional investors.”

According to BlackRock, the 10 largest asset managers—and nine of the 10 largest insurance companies—along with some central banks, are using the investment vehicle.

The report also stated that growing use of actively managed ETFs has contributed to the sharp rise in bond ETF assets. The report found that while bond ETF growth has traditionally been fueled by index-based investments, that source has expanded to now include actively managed ETFs, which provide access to sub-asset classes that are more difficult to index.

“Historically, active strategies have only been available in mutual funds or separate accounts,” the report stated. “Today, however, the expanding landscape of active fixed income ETFs enables institutional investors to access these same strategies.”

The report cited a recent PricewaterhouseCoopers survey of institutional investors that found that nearly 25% of respondents are considering investing in active ETFs over the next year or two.

“Increasingly, active ETFs are becoming critical components in fixed-income portfolios alongside index and enhanced index strategies,” the report stated. “In fact, over the past three years, U.S. actively managed bond ETFs have outpaced the growth of index ETFs at an annualized 26% rate.”

According to the BlackRock report, actively managed strategies currently account for 14% of U.S. fixed-income ETF assets under management and 8% of total U.S. ETF assets.

“The growth rate of active ETF assets is expected to outpace total ETF growth in coming years, in part driven by the evolving demands from the institutional investor base,” the report stated.

Data & Research May 19, 2025

Small Business Owners Show Resilience on Main Street

U.S. small business owners report they are staying the course to endure inflation and labor pressures.

Reported by

About half of U.S. small businesses are shifting their strategies in response to ongoing economic pressures, according to a recent Chase survey. With inflation, labor shortages and tariffs creating persistent challenges, small business confidence remains well below its post-election peak. Still, rather than pulling back, many owners are adjusting and finding new ways to stay competitive, especially in key regions across the country.

These businesses are actively responding to the changing economic environment, the survey found. They reported being more likely than the national average to support local suppliers, with a 1.4x higher rate of buying locally. They also reported focusing on keeping their teams strong, investing in employee retention at 1.3x the national rate. On the tech front, they reported embracing change, being 1.4x more likely to adopt artificial intelligence tools as part of their operations.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

“Market conditions and overall optimism will always fluctuate, but what matters is how businesses respond and adapt to the moment,” said Ben Walter, the CEO of Chase for Business, in a statement accompanying a summary of the survey. “Small business owners are some of the most resilient and forward-thinking leaders out there—constantly adopting new tools and navigating challenging times with grit and innovation.”

According to the survey, March saw significant resilience among metropolitan small businesses: in metro statistical sample areas, small business performance exceeded expectations for 71% of businesses in March, as compared with 56% nationally. Small businesses in Chicago and Tampa, for example, were more likely than the national average to say it is important to continue to invest in the business during challenging marketing conditions. In Houston, small businesses were 1.6% more likely than the national average to have hiring plans.

Chase surveyed approximately 500 small business owners across the nation, plus about an additional 300 in six specific metropolitan areas in mid-March 2025.

Still Smiling Through the Stress

At the same time, new research commissioned by VistaPrint underscored the enduring spirit, adaptability and passion that define America’s small business community. The research examined the current state of happiness among small business owners in the United States.

The findings revealed that 42% of small business owners consider themselves very happy, while 39% reported being somewhat happy, reflecting a strong sense of optimism and resilience despite ongoing economic uncertainty. Only 10% said they feel somewhat or very unhappy.

More than half said they are happier now than when they first started their business, and 53% reported being much happier running their own business than working for someone else. According to VistaPrint, the survey showed that internal, day-to-day factors such as personal growth and independence have a greater impact on happiness than external influences.

The study was conducted for VistaPrint by YouGov between April 17 and April 21, 2025, and included responses from 450 small business owners in the U.S. aged 21 to 64, running businesses employing between 1 and 100 people.

Simpler Banking, Stronger Business

SmartBiz Bank N.A. recently shared results from its State of Small Business: Industry Pulse survey, looking at how owners are approaching financing, what they are looking for in a bank and the challenges they are navigating in today’s economy.

One key takeaway was that trust in traditional banks remains strong: About 40% of respondents have stayed with the same primary bank for more than seven years.

Small business owners were clear about what they want. According to the survey, the banking features that small business owner respondents prioritize most included easy online and mobile banking (67%); low or no fees for ACH, wires or transfers (63%); access to business credit or lines of credit (51%); and simple fund transfers.

Almost 70% of small businesses surveyed were looking for Small Business Administration loans, followed by a business line of credit or business credit card. The challenges most cited in obtaining funds were high interest rates (47%); not being approved or getting less capital than needed (47%); and complex application processes (23%).

According to SmartBiz Bank CEO Evan Singer, the goal of the survey was to better understand the pressures small businesses fare and how banks can meet their needs more effectively. The insights were gathered from more than 200 SmartBiz Bank customers across industries.

«