Cautious investors may want to look beyond high-yield savings accounts

Huge month for active management

Cautious investors piling into cash may want to consider other options.

According to SPDR Exchange Traded Funds’ Matthew Bartolini, active management can also furnish them with stability and income while creating more opportunities for upside.

“Active fixed income has been really a consistent engine of uphold within the active [ETF] construct — not only from flows but also returns,” the firm’s managing director and research head told CNBC’s “ETF Edge” this week.

Bartolini contends that not only do they give investors more flexibility, the strategies also furnish consistent performance and improved tax efficiencies.

He also believes the forward-looking returns are looking better than they have in the past.

“But with higher returns comes higher volatility,” added Bartolini, who sees big benefits from active management. “The thing we keep going back to with investors [is] about creating portfolios that can produce income returns while maximizing the amount of risk they are taking to get those because yields are high.”

Bartolini warns cash carries its own set of risks.

“On the cash portion of the market, that income is not going to be as stable as it once was because of reinvestment risk,” he said.

‘Very hard to get people to think about bonds’

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