Home Investing Bond ETFs attract $14 billion in April, leave equities on back foot

Bond ETFs attract $14 billion in April, leave equities on back foot

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More than US$14 billion was added to U.S.-listed exchange-traded debt funds in April.SeongJoon Cho/Bloomberg

Investors sought shelter in bonds over stocks in April on the heels of equity volatility and interest-rate fears.

More than US$14 billion was added to U.S.-listed exchange-traded debt funds last month, the most since October 2014, according to Bloomberg Intelligence data. That’s the third consecutive month that funds holding bonds attracted more cash than their stock counterparts — the longest streak since at least May 2011.

With duration fears taking hold, investors favored short-term U.S. government debt, sinking US$2.3 billion into an iShares ETF that holds Treasury bonds with remaining maturities of between one month and a year, the most since January 2016.

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