ETFs & Mutual Funds
ETF Traders Ditch Risk Assets En Masse, Pile Billions Into Bonds
- Major credit ETFs JNK and LQD each post outflows of $1 billion
- More than $2 billion was added to short-term Treasury products
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In the grip of the worst day for stocks in two months, traders in the hyper-liquid world of ETFs ditched equities and corporate bonds and headed for the safety of government debt as yields broke out anew.
Money managers on Tuesday pulled billions of dollars from major exchange-traded funds tracking stocks and credit as hot economic data spurs fresh fears that the Federal Reserve will be forced to ramp up its tightening campaign. A $1 billion outflow hit the-now $7.6 billion SPDR Bloomberg High Yield Bond ETF (JNK) in the largest withdrawal since 2020, according to overnight data compiled by Bloomberg.