Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Fixed-income ETFs pull in cash in "rush for safety"

Published 02/11/2019, 03:45 PM
Updated 02/11/2019, 03:45 PM
© Reuters.  Fixed-income ETFs pull in cash in "rush for safety"
  • Investors pushed $490M into iShares 20+ Year Treasury Bond ETF (TLT -0.3%) last week, bringing its YTD inflow to a record $2.3B, Bloomberg reports.
  • Fears of slowing economic growth, geopolitical uncertainties, and corporate earnings revisions are signaling a restrained upside for equities and triggering "a rush for safety," says Antoine Lesne, head of SPDR ETF Strategy and Research for Europe at State Street (NYSE:STT) Global Advisors.
  • That's helped push three-month trailing inflows into fixed-income ETFs to its highest on record through January-end, according to State Street.
  • “Fixed income is thus a good place to be relative to higher potential drawdowns in equity portfolio," says Lesne.
  • Investors added $18.4B into U.S.-listed fixed-income ETFs this year, almost as much as the $18.9B they've taken out of equity funds, according to Bloomberg data.
  • Now read: Here's Why U.S. Interest Rates Are Low - Hint: It's Not Europe

Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.