Bond ETFs of Every Flavor Hammered by Building Inflation Bets
- Investment-grade, high-yield and government debt post outflows
- Meanwhile, investors pour cash into inflation-linked bond ETFs
This article is for subscribers only.
Exchange-traded funds across the bond spectrum are bleeding assets as investors brace for higher inflation.
The $46 billion iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has lost $7.4 billion in six weeks -- its worst-ever stretch of outflows, according to data compiled by Bloomberg. Short interest as a percentage of shares outstanding on the $14 billion iShares 20+ Year Treasury Bond ETF (TLT) is at a three-year high, IHS Markit Ltd. data show. Over $1 billion was pulled from the $10 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK) in the biggest weekly exodus since last February.