The last 30 days have seen investor sentiment shift towards towards investment grade bonds as broad based and investment grade corporate bond ETFs saw powerful cash inflows. Overall, bond ETFs have continued to collect assets as fixed income ETFs ended July at $1.01billion in total assets under management (up from $965billion at month-end June).
As reported by ETF Action:
Net flows for the year for bond ETFs are a positive $126billion
Broad based bond ETFs seem to be in vogue as 30-day inflows totaled over $17billion
Inflation seems to be a concern as TIP ETFs have seen inflows of over $5.25billion in the last 30 days.
Investment grade corporate bond ETFs saw inflows of over $45billion year-to-date
Broad based bond ETFs have attracted over $30billion
High yield corporate bond ETFs have seen inflows of over $18billion
Senior loan (Bank Loan) floating rate funds have seen outflows of $2.6billion
Long U.S. Treasury bond ETFs have managed to pair their losses and are about where they started 2020
Source:ETF Action. Table is provided for illustrative purposes only. Past performance is not a guarantee of future results. (1) Not all ETFs or asset classes represented here. (2) Excluding floating rate. FactSet classifications are used. Data as 7/31/2020
At the time of this writing, JR Rieger’s fixed income related holdings include investment grade individual municipal bonds, insured municipal bonds, a municipal bond money market fund and a position in the VanEck Vectors High-Yield Municipal Index ETF (HYD)
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