2026 ETF.com Award Nominees: International Fixed Income

The Nominees

ILS - Brookmont Catastrophic Bond ETF

Launched: April 2025 | ER: 1.58% | AUM: $30M | Issuer: Brookmont Capital

Investment Strategy: ILS is actively managed and seeks current income as well as capital preservation through its investment in catastrophe bonds. These bonds are insurance-linked, or event-linked bonds where insurers pass on certain risks linked to catastrophic events to investors. Investors earn interest/dividends and a return of principal when trigger events fail to manifest.

• Merit: Very High - Opens entirely new asset class to ETF investors
• Position: First-mover with no competition
• Utility: High - “Insurance-linked, uncorrelated income” is compelling
• Power: Very High - Climate risk means cat bond market will only grow

Why it’s nominated:  ILS is an actual ground breaker for a few reasons. It's the first-ever US-listed catastrophe bond ETF, and the asset class is floating-rate and uncorrelated to traditional markets—a rare combination.  This is actual category creation; the $50B+ catastrophe bond market has been inaccessible to most investors until now. The 1.58% expense ratio is high, but that's often what happens when a whole new asset class opens: you’re paying for access and unique expertise.  While we made hay out of ILS launching without a lead market maker, it hasn't been catastrophic for liquidity.

XAGG - Eaton Vance Income Opportunities ETF

Launched: November 2025 | ER: 0.50% | AUM: $344M | Issuer: Morgan Stanley / Eaton Vance

Investment Strategy: An actively managed fund, XAGG seeks high current income by investing across global bond markets and sectors. The strategy invests in corporate securities, agency and commercial MBS, asset-backed securities, emerging markets, convertibles, U.S. government and foreign sovereign debts, as well as derivatives. 

• Merit: High - institutional multi-sector capability in ETF
• Position: Instant credibility through conversion
• Utility: Good - diversified income from trusted manager
• Power: Good - Institutional global bond heft

Why it’s nominated: XAGG is a former Morgan Stanley branded multi-sector fixed income mutual fund spanning MBS, ABS, CMBS, CLOs, high yield, EM debt, and bank loans. While the naming conventions of Morgan-Stanley-Affiliated ETFs is a bit confusing, the institution as whole has definite fixed income chops. Eaton Vance has deep expertise in the corners of fixed income that most managers avoid. Converting that capability into an ETF gives advisors access to institutional-quality, global, multi-sector management. The $344M in AUM validates the demand.

CFIT - Cambria Fixed Income Trend ETF

Launched: March 2025 | ER: 0.71% | AUM: $21M | Issuer: Cambria

Investment Strategy: CFIT invests in bonds globally, choosing its exposures based on how fixed income categories are trending. When different bond sectors and segments trend upwards, CFIT increases its investments in them, and when categories decline, the strategy instead increases its exposure to U.S. Treasuries. 

• Merit: High - Trend-following in fixed income is differentiated
• Position: Unique approach in FI space
• Utility: Good - “Tactical bonds” appeals to active-minded advisors
• Power: Moderate - Depends on trend signals adding value over cycles

Why it’s nominated: Meb Faber’s Cambria has built real credibility with both individual investors and advisors in quantitative, trend-following strategies. Applying that framework to fixed income is a logical extension. In a world where “buy and hold bonds” has been painful, tactical approaches deserve consideration. CFIT takes Cambria’s signature trend-following approach and applies it to global bonds, primarily using other ETFs for exposure (0.22% of the Expense Ratio is acquired fund fees). CFIT adjusts duration and credit exposure based on momentum signals—going defensive when trends turn negative.

VGMS - Vanguard Multi-Sector Income Bond ETF

Launched: June 2025 | ER: 0.30% | AUM: $160M | Issuer: Vanguard

Investment Strategy: An active, multi-sector bond offering from Vanguard. The strategy seeks diversified bond exposure in U.S. Treasuries, corporate bonds, and emerging market bonds that spans credit qualities, all while priced at an attractive 0.30%. 

• Merit: High - Vanguard quality at Vanguard price
• Position: Late entrant but cost leader
• Utility: Excellent - “Vanguard global multi-sector bonds” is an easy pitch
• Power: High - Vanguard’s cost advantage compounds over time

Why it’s nominated: Welcome to the Vanguard Effect: when Vanguard enters a category, pricing changes for everyone. At 30 basis points, VGMS undercuts most multi-sector competitors by half or more, but provides real exposure outside plain-vanilla bonds. Diversified exposure includes investment-grade, high-yield, and emerging market debt. Top ten holdings include everything from Saudi and Dominican bonds to Charter Communications corporate paper. The $160M in early flows suggests investors have noticed.

EMBX - VanEck Emerging Markets Bond ETF

Launched: October 2025 | ER: 0.75% | AUM: $93M | Issuer: VanEck

Income Strategy: EMBX seeks total returns comprised of both capital appreciation and income. The strategy provides actively managed exposure to dollar-denominated EM sovereign and corporate debt. VanEck’s conversion of a 14 year old mutual fund strategy brings a proven, existing emerging markets bond portfolio to ETF investors. 

• Merit: High - VanEck EM expertise in ETF wrapper
• Position: Notable conversion solving real access problem
• Utility: Good - Active EM bonds at reasonable cost
• Power: High - EM debt remains structurally under-owned

Why it’s nominated: The EM bond space has needed better ETF options. VanEck’s conversion brings genuine expertise to the wrapper, solving a real problem for investors who want active EM debt management in a better wrapper than a mutual fund.

1. All data sourced from FactSet as of 12/26/31.

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