According to an E*TRADE press release, while most (65%) survey respondents agree fixed income is an important part of a well-diversified portfolio, those who do not hold fixed income investments say:
- Fixed income is more important during times of volatility (58%),
- Fixed income is an investment tool only for retired people (45%), and
- Buying and selling fixed income is a complex process (36%).
“Fixed income is indeed a key component of most well-diversified portfolios, yet we continue to see hesitation and misperceptions perpetuated among investors, signaling a need for better education, tools and access to fixed income securities and information,” said Michael Curcio, Managing Director, E*TRADE Securities LLC, in the release.
The survey additionally found that the majority (52%) of fixed income investors prefer commission-based agency pricing similar to equity trade pricing.
As a result of its findings, E*TRADE said it has upgraded its Bond Center to deliver more education and transparent pricing.