In total, bond ETF assets grew slightly in March but within the category massive shifts continue.
Broad based, investment grade bond ETFs had March inflows of nearly $7billion and are the leaders in asset collection year-to-date.
Investor inflation concerns are reflected in the March inflows of nearly $3.5illion into TIPS related ETFs.
Risk-Off? Junk bond ETFs have seen three months of outflows in 2021with March outflows totaling over $800million.
Senior loans, long the “don’t touch this” asset class, have now seen a resurgence as senior loan yields have been attractive relative to fixed rate junk. Senior loan ETFs have seen a $3.3billion inflow year-to-date and $650million in the last 30-days.
Municipal bond ETFs now total over $68billion in assets as the asset class has enjoyed strong demand driven by expectations of higher taxes in the future.
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 3/31/2021.
At the time of this writing, JR Rieger’s fixed income related holdings include various investment grade & high yield municipal bonds, insured municipal bonds, municipal bond money market funds and a position in the VanEck Vectors High-Yield Municipal Index ETF (HYD).
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