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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.
  • ETFs: TLT, TBT, TMV, TBF, EDV, TMF, TTT, ZROZ, VGLT, TLH, UBT, SPTL, DLBS, VUSTX, TYBS, DLBL-OLD, OPER
  • Now read: Here's Why U.S. Interest Rates Are Low - Hint: It's Not Europe


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