Economics

Record Cash Is Draining From Safest Bond ETFs Ahead of Fed Hike

  • Nearly $2.5 billion exits from SHV in biggest ouflow ever
  • Investors may be willing to move back into risky assets: Maley
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Investors are offloading cash-like exchange-traded funds in a hurry ahead of what’s expected to be the Federal Reserve’s fourth-straight, 75 basis-point interest-rate hike.

Cash-like bond funds have been one of the hottest spots in the $6.3 trillion ETF industry this year as the Fed’s aggressive hiking cycle upended virtually every asset class. However, investors are quickly changing their minds.