3 Leading Active Fixed-Income ETFs

The case for active management in fixed income remains robust. There are several reasons supporting that. Many indexes exclude a lot of bonds because they're difficult to price and trade. That means active managers can take advantage and buy these bonds to improve their odds of outperforming low-cost passive index funds. But not all active fixed income ETFs are traded equal. Investors should still prioritize experienced management teams that have the necessary tools and expertise to deliver consistently strong returns. Ultra-short bond funds may not be as risky as other fixed income strategies, but they can still benefit from specialized expertise. One of Morningstar's favorite picks is JPMorgan Ultra-Short Income, ticker JPST. At 18 basis points, the ETF's price tag is a plus as well. JPMorgan veteran James McNerney has led the ETF since its 2017 inception and draws on the support of the firm's deep bench of analysts and traders. Investors can take comfort in the fact that JPMorgan has been honing its ultra-short investment framework for decades. That, combined with the manager's attention to downside protection, makes this a strong choice for investors looking to put cash to work without losing too much sleep. PGIM AAA CLO ETF, ticker PAAA, is another actively managed fixed income ETF that's a great choice for investors looking to take a step up from cash. Collateralized loan obligation ETFs, or CLO ETFs, have come onto the scene in a big way in recent years. CLOs are actively managed pools of below investment grade bank loans. These structures are broken down into tranches, or slices, each of which carries a different credit rating based on its protection from underlying losses. The AAA tranche sits at the top that stack. It has the greatest protection from credit losses, and it's become a popular structure for ETF managers. The team's expertise stands out. Portfolio manager Edwin Wilches co-heads PGIM Securitized Platform and came up through the firm's CLO management business. Co-manager O'Connor Burns rose through the same ranks. So, both are well-equipped to navigate these unique structures. At just under 3 years, the ETF's track record is still relatively limited, but it's promising. Since its inception, it beat all but one of its similarly focused CLO ETF peers through May. PIMCO Active Bond ETF, ticker BOND, isn't quite as cheap as the first two on this list, but PIMCO is a prime example of an active manager worth paying up for. This income-focused portfolio is managed in line with the firm's total return style strategies and often features a heavy dose of securitized debt, which can offer nice diversification from equities. Consistent with other strategies across PIMCO's top-notch fund lineup, the managers of this strategy will occasionally make bold bets on the direction of interest rates and currencies. Its 45 basis point expense ratio is cheaper than the majority of its intermediate core plus bond peers. For nearly a decade, co-managers David Braun, Daniel Hyman, and Jerome Schneider have led this strategy. They're an impressive bunch, especially Schneider, who won Morningstar's Outstanding Fixed-Income Portfolio Manager Award for the second time in 2026. This continues to be a strong choice as a long-term fixed-income anchor in diversified portfolios. Those are three actively managed fixed-income ETFs that we like. Each serves a different purpose, but they should all do well in their respective categories.