Bond ETFs Come of Age After $150 Billion Year Heralds New Order
- Debt funds vied with stock strategies to take cash last year
- Investors use these products for portfolio trading and hedging
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Welcome to the big time, bond ETFs.
Long overlooked as the younger sibling of equity exchange-traded funds, strategies focused on corporate or government debt took in more than $150 billion in the U.S. last year, the most on record and just shy of the sum netted by their stock counterparts. It was the biggest annual leap for bond ETFs since 2014, boosting assets to more than $800 billion, data compiled by Bloomberg Intelligence show.