U.S. Markets closed
  • S&P 500

    3,963.51
    +29.59 (+0.75%)
     
  • Dow 30

    33,781.48
    +183.56 (+0.55%)
     
  • Nasdaq

    11,082.00
    +123.45 (+1.13%)
     
  • Russell 2000

    1,818.29
    +11.39 (+0.63%)
     
  • Crude Oil

    72.01
    +0.55 (+0.77%)
     
  • Gold

    1,800.30
    -1.20 (-0.07%)
     
  • Silver

    23.28
    +0.04 (+0.17%)
     
  • EUR/USD

    1.0554
    -0.0006 (-0.0528%)
     
  • 10-Yr Bond

    3.4910
    +0.0830 (+2.44%)
     
  • Vix

    22.29
    -0.39 (-1.72%)
     
  • GBP/USD

    1.2229
    -0.0009 (-0.0709%)
     
  • USD/JPY

    136.7610
    +0.1310 (+0.0959%)
     
  • BTC-USD

    17,213.37
    +351.96 (+2.09%)
     
  • CMC Crypto 200

    405.37
    +10.69 (+2.71%)
     
  • FTSE 100

    7,472.17
    -17.02 (-0.23%)
     
  • Nikkei 225

    27,847.61
    +273.18 (+0.99%)
     

5 Bond ETFs Enjoying a Great 2018

This article was originally published on ETFTrends.com.

The equity market has be shaken by a sudden bout of volatility, sending investors out of riskier assets and into safer plays. The shift in investment sentiment has been a huge boon for bond exchange traded funds.

U.S.-listed bond ETF flows were on pace for their biggest month since October 2014, Steve Laipply, Head of U.S. iShares Fixed Income Strategy at BlackRock, said in a note.

U.S.-listed bond ETFs attracted $14.7 billion in new inflows over April, marking their best month of net inflows since October 2014 when bond ETFs brought in $17.3 billion.

Laipply pointed out that while fears of rising rates have largely kept investors on the sidelines over the first quarter, many investors have began allocating toward fixed-income exposure once rates appeared to stabilize with yields on benchmark 10-year Treasuries hovering around the high 2% range.

Fed Helps Strategist That Diminish Risk

Given the rising rate backdrop and the Federal Reserve's tighter monetary policy outlook, flows have gone into floating rate, shorter maturity and interest-rate hedged bond ETFs, reflecting investors' growing demand for strategies that diminish rate risk.

Furthermore, the ongoing equity market volatility has pushed investors toward tried-and-true fixed-income plays like iShares Core Aggregate Bond ETF (AGG) , which saw $4.4 billion in net inflows year-to-date, according to XTF data.

Other notable bond ETF plays that attracted hefty inflows year-to-date due to rising rate risks include iShares 1-3 Year Treasury Bond ETF (SHY) $5.8 billion, iShares Floating Rate Bond ETF (FLOT) $2.5 billion, iShares Short Maturity Bond ETF(NEAR) $717 million and iShares Core 1-5 Year USD Bond ETF (ISTB) $680 million.

For more information on the ETF industry, visit our ETF performance reports category.

POPULAR ARTICLES FROM ETFTRENDS.COM

READ MORE AT ETFTRENDS.COM >