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Existential Crisis in Bonds Fuels Wall Street’s Income ETF Boom

  • Wave of payout-focused ETFs on way as bond volatility builds
  • Skeptics warn new funds simply increase equity-risk exposure

In an inflation-lashed world where bonds are posting record losses, Wall Street issuers are betting investors hungry for income will instead lavish their millions on ETFs that ride stocks in order to deliver payouts.

At least four issuers have filed plans for so-called income exchange-traded funds in the past few weeks, while three more such products have started trading in the same period. The vehicles target a steady stream of income using a range of equity-based strategies, like buying dividend-paying companies or selling call options on the S&P 500.