Bond ETF Outflows Suggest No More ‘Crying Wolf’ on U.S. Rates
- iShares Core U.S. Aggregate Bond ETF sees record withdrawals
- Investors yank cash from funds tracking high-yield bonds
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Bond investors are running from anything that smells of interest-rate risk.
Investors pulled billions of dollars from exchange-traded funds that track longer duration fixed-income plays, as Treasury yields resumed their upward march. In fact, the top four outflows for U.S.-listed ETFs on Tuesday were all fixed-income related, as investors also yanked cash from funds stuffed with junk bonds, according to Christian Fromhertz, chief executive officer of Tribeca Trade Group.